The cryptocurrency world was abuzz with excitement as Shiba Inu (SHIB), the meme-based cryptocurrency that gained popularity as a "DOGE killer," launched its much-anticipated Shibarium mainnet on 16 August 2023. This layer-2 scaling solution was positioned to revolutionize the Shiba Inu ecosystem, offering faster and more scalable transactions. However, what was meant to be a monumental step forward quickly turned into a stumble as technical issues plagued the launch, leading to its abrupt halt. The aftermath has been a mix of uncertainty, decreased exchange reserves, and questions about the future of SHIB.
Meanwhile, the Shiba Inu community has been eagerly awaiting the moment when Shibarium, the much-talked-about layer-2 scaling solution, relaunches in public mode. Amidst the anticipation, developer Kaal Dhairya has stepped forward to provide crucial clarifications, shedding light on the status and functionalities of Shibarium as it gears up for its official relaunch.
Despite the looming relaunch of the Shibarium network, which is expected to go live in the coming weeks, the price of SHIB has continued to decline. After a fresh 24-hour drop, the meme coin’s weekly and monthly price performances were pushed further into the red zone - leaving SHIB’s price with some ground to make up before it can recover from failed initial launch of Shibarium.
SHIB Market Supply Diminishes
Months of testing and preparation preceded the Shibarium mainnet launch, which saw an influx of millions of transactions. Yet, the technical problems that arose shortly after launch resulted in a quick pause. It is suggested that concerns about network vulnerabilities prompted many SHIB holders to take matters into their own hands, moving their tokens into self-custody solutions. This exodus of tokens from exchange wallets has caused Shiba Inu's reserves on exchanges to drop to the lowest levels in over a year.
Despite the reassurance of a $2 million insurance scheme, investor confidence appears to have been shaken. Data from Cryptoquant illustrates the decline in Shiba Inu exchange reserves, a trend that started on 17 August 2023, right after the Shibarium mainnet launch. This decline is reminiscent of levels last witnessed in February 2022, reflecting the extent of the ongoing shift in token custody.
What is particularly noteworthy is the movement of SHIB tokens out of exchange wallets between 17 August 2023 and 26 August 2023. A staggering 1.8 trillion SHIB tokens, equivalent to approximately $14.5 million at the current market price, were withdrawn during this period. This withdrawal accounts for more than 10% of SHIB's average trading volume over the past week. Furthermore, this dynamic underscores the sensitivity of the SHIB market to changes in token liquidity.
Active Addresses for SHIB Plummet More Than 50%
The decline in active addresses on the Shiba Inu network is another indicator of the impact of the Shibarium fiasco. The number of daily active addresses dropped by 56%, from 8,214 on 16 August 2023 to 3,647 on 26 August 2023. Active addresses represent participants engaging in economic transactions within the network. The reduction signals a reluctance among investors to transact amidst the uncertainties brought about by the technical challenges.
The market response to these developments has been reflected in the price of SHIB. Following the Shibarium-related disruptions, SHIB's price has largely maintained a neutral stance, hovering around the $0.0000008 range. However, the implications of these events are far-reaching. The correlation between the technical woes surrounding the Shibarium launch and the subsequent drop in market demand underscores the interplay between technology and market sentiment.
In the grand scheme of things, the future of SHIB remains uncertain, but not bleak. The fate of its price action rests heavily on user confidence and participation in the network.
The relationship between the Shibarium launch, market demand, and SHIB's price trajectory is a testament to the interconnectedness of technical innovation and investor psychology. While the initial launch stumbled, a successful relaunch of Shibarium has the potential to be a game-changer for SHIB's price, provided that concerns about network vulnerabilities are quelled and market demand experiences a resurgence.
In the ever-evolving landscape of cryptocurrencies, the Shiba Inu community now watches and waits to see if the dog-themed token can bounce back from its technical setbacks and regain the trust of its investors. Only time will reveal whether Shibarium can rise from the ashes and propel SHIB to new heights or whether this chapter will serve as a cautionary tale in the cryptocurrency world.
SHIB Gears up for the Shibarium Relaunch
Recent updates from the Shiba Inu team have indicated that Shibarium is currently operating in private mode and running smoothly, needing only the final transition to be made public. Lucie, a member of the Shiba Inu team, conveyed this progress and hinted at the imminent shift to the public mode. However, Kaal Dhairya's clarifications are instrumental in dispelling concerns and misconceptions surrounding the Shibarium network.
Kaal Dhairya addressed a common misunderstanding by emphasizing that the availability or unavailability of the Shibarium explorer, named "ShibariumScan," does not impact the operational state of the Shibarium network itself. He clarified that even if ShibariumScan is temporarily unavailable, it does not signify a network downtime. This distinction is crucial in understanding that the core functionality of the Shibarium network remains unaffected. Kaal further explained that ShibariumScan uses an open-source version of Blockscout, which requires substantial server resources. Efforts are currently underway to swiftly restore the hosted version of ShibariumScan, reassuring the community that these technicalities should not be a cause for concern or fear, commonly referred to as "FUD."
The developer's message is vital in addressing any uncertainty that might have arisen due to the technicalities of the network. Such clarifications contribute to maintaining a stable and informed community, which is pivotal in the dynamic world of cryptocurrencies.
The community's expectations have surged as an official announcement of Shibarium's public relaunch appears imminent. Notably, Shibarium has already achieved integration with key platforms, building momentum even before the relaunch. Dextools, a prominent DeFi trading application, recently announced its integration with Shibarium, enabling the trading of Shibarium tokens. Furthermore, Geckoterminal, a real-time decentralized exchange (DEX) tracker powered by CoinGecko, has also welcomed Shibarium onto its platform. This move empowers users to conveniently track and engage with all Shibarium-related tokens.
While the community eagerly awaits the official news of Shibarium's relaunch, the excitement remains palpable among team members and enthusiasts alike. Lucie, a Shiba Inu team member, expressed her expectations with a sense of humor, reminiscent of the community's ability to navigate challenges with resilience and camaraderie. Her message signifies the community's readiness to embrace this new era, which is poised to usher in a wave of innovation and advancement in the blockchain technology landscape.
As the eagerly awaited moment approaches, Shibarium's public relaunch holds the promise of transforming the Shiba Inu ecosystem and offering new avenues for exploration and growth. With the clarifications provided by Kaal Dhairya and the enthusiastic anticipation within the community, all signs point to a monumental step forward for Shiba Inu and its dedicated followers.
The growing anticipation surrounding Shibarium’s relaunch was not reflected in the meme coin’s price over the past 24 hours. According to data from CoinStats, SHIB was changing hands at $0.000007980 at press time. This was after the altcoin suffered a 1.66% loss during the past day of trading.
Price chart for SHIB (Source: CoinStats)
This negative daily performance pushed SHIB’s weekly and monthly performances further into the red as well. Subsequently, the meme coin was down 3.32% for the week, while its price was down 3% over the past 30 days. Meanwhile, SHIB was also outperformed by the market leader Bitcoin (BTC) in terms of 24-hour price performance, and was down 1.59% against the largest cryptocurrency by market cap.