The price of the Shiba Inu (SHIB) token fell over 7% on Thursday after a bumpy launch of “Shibarium”, a Layer 2 scaling solution on the Ethereum blockchain, earlier in the day.
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- Shortly after Shibarium’s launch, crypto data tracker PeckShield Alert was released written down that $1.7 million worth of ETH was stuck as users attempted to transfer tokens to Shibarium.
- As the Shibarium bridging issue played out, the price of the SHIB token fell, losing 7.34% in the 24 hours to 5:00 p.m. in Hong Kong, according to data from CoinMarketCap. BONE, another token issued by the Shiba Inu developers, plunged 18.25% over the same period.
- Pseudonymous blockchain analyst ZachXBT said On Thursday, the company announced that Shibarium’s Remote Procedure Call (RPC) — a blockchain node that runs key client applications — had malfunctioned.
- Shibarium RPC’s website was unavailable in Hong Kong as of Thursday evening.
- Shibarium is part of a broader plan to make the memecoin a serious blockchain project. But beyond the bridging disruption, analysts raised concerns about this strategy.
- “Perhaps the community has preferred the memecoin-only narrative to the foundation trying to be another solution in a crowded DeFi space,” said Justin d’Anethan, head of APAC business development at Belgium-based crypto market maker Keyrock .
- Introduced at the ongoing Blockchain Futurist Conference in Toronto, Canada, Shibarium is a proof-of-stake blockchain developed by Shiba Inu developers. The aim is to enable cheaper and more scalable transactions on the main Ethereum network, according to the developers.
- Applications built on the network use the Shiba Inu ecosystem tokens SHIB, BONE, LEASH, and TREAT.
- The BONE token validates transactions and serves as a means of payment for gas fees, while SHIB serves as the governance token of the SHIB Doggy DAO.
- The still-forming SHIB Doggy DAO is a decentralized autonomous organization that will go on to govern the Shiba Inu ecosystem and will be advised by digital asset advisory and investment firm Alpha Transform Holdings.