SHIB price falls 6% amid Shibarium L2 issues

On August 17, the intraday decline rate of Shiba Inu (SHIB) reached 9%. The market reacted to problems with layer-2 solution Shibarium after its launch.

Losses of ecosystem-related tokens Bone ShibaSwap (BONE) and Leash (LEASH) in USDT and WETH pairs at highs exceeded 22% and 28% respectively.

Beosin analysts recommended temporarily abstaining from activity in the L2 network amid the lock-up of 1003 ETH (~$1.8 million) in a “bridge” smart contract.

As of writing, the transactions are pending.

According to блокчейн-обозревателю, the latest block was formed more than three hours ago.

“I have no idea, but RPC is dead […]. Despite everything, this was a sloppy launch,” — on-chain analyst ZachXBT commented.

CoinDesk noted that users were barred from sending messages on Discord shortly after the first reports of problems.

The launch of Shibarium was timed to the Blockchain Futurist Conference in Canada.

The L2 solution is built on Ethereum and embodies Ryoshi’s vision.

The network uses Shiba Inu ecosystem tokens — SHIB, LEASH and BONE. The latter is chosen as the native asset of Shibarium for paying rewards to validators and delegators. For these purposes, 20 million BONE are reserved from a total supply of 250 million coins.

The protocol also employs SHIB burn mechanism via the Burn Portal.

According to the description, Shibarium offers fast transactions and low fees thanks to Proof-of-Stake. It provides “enhanced security” thanks to sovereign identity.

“The Shibarium mainnet is ready to welcome millions of people interested in shaping a future where decentralization principles are observed,” the team said.

The launch followed a successful testing phase, which yielded a community of more than 21 million wallets.

“We launched the L2 solution to create the world's first decentralized digital nation-state” — said The Block chief developer Shitoshi Kusama.

The Shiba Inu team revealed details of the launch of its own metaverse built on Shibarium in March 2022.

In January 2023, developers announced the launch of the L2 solution in August.