The highly-anticipated launch of the Shibarium network took place yesterday. However, a technical glitch interrupted the community’s excitement surrounding its launch, which was also followed by steep drops in the prices of both SHIB and BONE.
Most notably, more than $2 million in bridged assets is reportedly locked up in the network. In addition to this, many Twitter users came forward to share some of the difficulties they were experiencing when interacting with the Shibarium network and its native block explorer.
Shibarium Launch Excitement Interrupted by Technical Hiccup
The cryptocurrency world is no stranger to anticipation and excitement surrounding new developments and launches. However, the recent launch of the Shibarium mainnet, touted as a layer 2 scaling solution for the Ethereum network, has encountered an unexpectedly rocky start. As holders and enthusiasts held out hope for a significant boost in token values, the initial outcomes have left many disappointed and concerned.
The Shibarium ecosystem, encompassing the popular Shiba Inu token (SHIB), the governance token BONE, and the LEASH token, had generated a high level of anticipation among its community. With the launch of the Shibarium network yesterday, there was an expectation that this milestone would propel the associated tokens to new heights. Unfortunately, these hopes were short-lived.
Reports from an internal Telegram conversation among Shibarium developers have highlighted some concerning developments. Lead developer Shytoshi admitted that the team was grappling with challenges related to the recovery of assets that were bridged to the Shibarium network. This revelation has cast a shadow of doubt on the effectiveness and stability of the network's bridge technology.
Blockchain analyst ZachXBT, while acknowledging that a definitive confirmation was pending, noted the alarming state of affairs within the network. The crucial RPC (Remote Procedure Call) node, essential for running key blockchain client software, was reportedly "dead," rendering crucial operations inoperative. Furthermore, the block explorer, a tool for visualizing blockchain transactions, was described as "awful."
Reports also highlighted instances of technical difficulties faced by users. Some users were unable to query their bridged balance over the RPC, an issue that further underscored the operational challenges of the Shibarium network. Adding to the concerns, the Shibarium RPC website was down, exacerbating the frustration of users trying to interact with the network.
The gravity of these issues becomes more apparent when examining the financial implications. The community has expressed fears that these setbacks may be indicative of a flawed bridge system.
Approximately $2.46 million worth of assets are reportedly locked within the Shibarium network, including $1.7 million worth of Ethereum (ETH) and an additional $762,000 worth of the governance token BONE. These substantial sums emphasize the urgency of resolving the technical challenges to prevent potential financial losses and setbacks for users.
SHIB and BONE Suffered Substantial 24-Hour Drops
At press time, CoinMarketCap indicated that SHIB was trading at $0.000008836 after its price pulled back more than 8% over the past day of trading. This negative daily performance also pushed the memecoin’s weekly performance further into the red zone to -9.80%. SHIB’s daily price drop was dwarfed, however, by that of BONE.
BONE saw its price drop by an eye-watering 20% during the past day of trading. Similar to SHIB, the weekly performance of BONE was also forced further into negative territory to -24.10%. Consequently, the altcoin was changing hands at $1.21 at press time.
Daily chart for BONE/USDT (Source: TradingView)
The drop in BONE’s price over the past 24 hours left the cryptocurrency trading between the $1.2060 support and $1.5000 resistance levels. During this period, the meme coin’s price also lost the support of the 50-day EMA line. It had also dropped below the 100-day EMA line at $1.2280 earlier today, but bulls were able to elevate BONE’s price to back above the technical indicator at press time.
Traders and investors will want to keep an eye on the crucial $1.2060 support level over the next 48 hours, as a daily close below this key price point within the next 2 days may be followed by further losses for BONE holders. In this scenario, BONE will be at risk of dropping to the 200-day EMA line at around $1.1508. Furthermore, if the SHIB team is unable to address Shibarium’s technical issues before the end of this week, then the altcoin may even fall to as low as $1.0638 over the upcoming 2 weeks.
On the other hand, if BONE’s price is able to close a daily candle above the 50-day EMA line at $1.3640, then it may attempt to reclaim the $1.50 support. A break above this mark will then clear a path for the meme coin to continue its ascent towards the next major resistance level at $1.8460.
Daily chart for SHIB/USDT (Source: TradingView)
Although SHIB’s price dropped over the past 24 hours, there was a significant bullish technical flag that was on the verge of being triggered leading up to this latest price decrease. At press time, the 50-day EMA line was attempting to break above the 100-day EMA line. Despite the 24-hour loss, the two technical indicators were still looking to cross.
The next few days will be crucial in determining the medium-term trend for the meme coin. If it closes today’s daily candle above the 50-day and 100-day EMA lines, then it may rise back above the $0.00000928 level. This will also position it above the 200-day EMA line. Thereafter, the meme coin may attempt to re-challenge the $0.00001052 resistance mark in the coming week.
On the other hand, a daily close today below the 50-day and 100-day EMA lines will most likely be followed by SHIB’s price looking for support from the $0.00000845 level. In addition to this, the shorter EMA line may fall back below the 100-day EMA line - signaling that medium-term momentum has shifted in favor of bears.