On August 16, 2023, the Shiba Inu meme coin enthusiasts celebrated the unveiling of the second-layer (L2) blockchain, Shibarium. This platform is designed to bolster decentralized app growth while tackling Ethereum’s scalability and transaction fee challenges. Yet, even amidst the celebrations, SHIB, the project’s native cryptocurrency, slid over 8% against the U.S. dollar, mirroring the larger crypto market’s decline. Adding to the concerns, complications arose with the Shibarium bridge, leaving roughly $1.7 million in ether seemingly in a state of suspension.
Shibarium’s Rocky Start: Stuck Funds and a Whale’s Strategic Play
The Shiba Inu development team has finally introduced the Shibarium L2 blockchain, tailor-made for the SHIB, BONE, LEASH, and TREAT crypto family. Unveiled last year, this network incorporates a new proof-of-stake (PoS) consensus method dubbed “proof-of-participation” (PoP).
At its core, validators commit coins as collateral to authenticate transactions and produce new blocks. As of now, Shibarium extends two capabilities: bridging the gap between the ETH blockchain and its platform, and allowing token delegation to secure Bone rewards.
Looking ahead, although the option is yet to roll out, enthusiasts will have the chance to enlist as validators and fortify the network. Additionally, Shibarium’s beta phase witnessed the creation of 21 million distinct wallets before its official launch.
However, by Wednesday night, close to 10 p.m. Eastern Time, murmurs of Shibarium facing hiccups began to surface. Reports suggest that all ETH and BONE deposits directed to the Shibarium bridge are at a standstill. This includes a staggering 600,000 BONE ($762K) and 954 ether ($1.7M). What’s more, the Shibarium network hit a snag in block processing, with no block confirmations for over five hours since the troubles commenced.
Some people suspect that the devs will be able to fix the situation accordingly, while others who deposited ETH into the bridge are “quite anxious.” While Shibarium grappled with its challenges, onchain analysts from Lookonchain revealed that a cryptocurrency ‘whale’ liquidated its entire holdings of BONE and SHIB to scoop up PEPE.
According to Lookonchain’s data, in the span of the last three days, this whale offloaded “979,469 BONE in exchange for 787 ETH ($1.44M) at a rate of $1.47.” Following the Shibarium’s block production hiccup, this same whale funneled a staggering 143 billion SHIB, valued at $1.32 million, into the Binance exchange.
What do you think about the issues with Shiba Inu’s Shibarium network? Share your thoughts and opinions about this subject in the comments section below.
