The cryptocurrency world is no stranger to volatility and unexpected events. The recent hiccup in the operations of Shiba Inu’s Layer-2 Shibarium network is a testament to this. After a brief pause in block production, Shibarium is back, and the market is reacting. Here’s a comprehensive look at what transpired, the reasons behind it, and the subsequent market response.
The unanticipated Halt: What happened to Shibarium?
Shiba Inu’s Layer-2 Shibarium network, a much-anticipated project in the crypto space, recently faced a significant challenge. The network had to halt its block production for almost a day, leaving many in the community anxious and speculating. The reason? An overwhelming amount of traffic on the blockchain exceeded the team’s expectations.
Shytoshi Kusama, the lead developer behind the project, quickly addressed the concerns. He confirmed that the high-level traffic was the primary cause of the disruption. However, he also reassured the community that the funds were secure and that there were no underlying issues with the bridge or the chain itself.
Shibariumscan.io, the block explorer dedicated to the Shibarium network, confirmed that the blockchain was back online and producing blocks. The network had entered a fail-safe mode as a precautionary measure to ensure the safety of funds when the traffic surged unexpectedly after the Shibarium mainnet went live.
Addressing the Challenge: Shibarium’s response and Future Plans
In the wake of the unexpected halt, the Shiba Inu development team proactively addressed the situation. Kaal Dhairya, one of the developers, shed light on the matter in an official blog post dated August 18. He revealed that the team was scaling operations to accommodate the massive traffic influx on Shibarium.
The blog post read, “In fact, as we slowly and carefully investigated where the problem exactly took place and found thousands upon thousands of contract creation and normal transactions IN ONE BLOCK.” This statement highlighted the sheer volume of transactions the network had to handle, leading to a temporary halt.
To further instill confidence in the community and stakeholders, the Shiba Inu team took another step. They decided to insure an amount of $2 million. This insurance is a safety net, ensuring that the community will not bear the brunt of the loss if there are any issues in retrieving funds after such incidents. The team also committed to regular updates on the status of the Shibarium network, which interestingly is a fork of the well-known Polygon network.
Market Reactions: The fall and rise of SHIB, BONE, and LEASH
The crypto market, known for its sensitivity to news and events, reacted promptly to the Shibarium halt. The ShibArmy, a dedicated community of Shiba Inu enthusiasts, expressed concerns about spreading Fear, Uncertainty, and Doubt (FUD) that could potentially harm the project.
This FUD and the network’s temporary halt led to a significant selloff. Whales and traders liquidated a substantial portion of their holdings in SHIB, BONE, and LEASH tokens. These tokens’ prices took a hit, reflecting the market’s sentiment.
SHIB’s price saw an 11% drop in just 24 hours, reaching a low of $0.0000076 and a high of $0.0000093. It was trading at $0.0000082 at the time of writing. BONE wasn’t spared either, with its price plummeting by 15% in the same time frame, currently trading at $1.18. LEASH, another token in the ecosystem, saw a 5% decrease, with its price at $430.
However, there was a silver lining as the Shibarium network resumed operations, and the team took proactive measures to address the situation. Prices began to rebound, showing signs of recovery despite the broader crypto market still reeling from the selloff.
Conclusion
The recent events surrounding the Shibarium network serve as a reminder of the dynamic nature of the crypto world. While challenges are inevitable, the resilience and response of the teams behind these projects play a crucial role in shaping their future. With Shibarium back online and the Shiba Inu team’s proactive measures, the community remains hopeful for what lies ahead.
