Categories: Analysis

Shiba Inu Price Drops Nearly 10% After Layer 2 Release Shibarium

Key Points:

Shiba Inu introduces the Ethereum-based Shibarium blockchain, expanding dog-themed tokens.
SHIB token value drops 10% post-launch glitches, impacting recovery hopes.
Shibarium’s L2 solution aims for speedier transactions, potential growth.

Shiba Inu’s journey from meme coin to legitimate cryptocurrency has taken a significant step with the unveiling of its Ethereum-based layer-2 blockchain, Shibarium. This innovative move is poised to expand the utility of dog-themed tokens, signaling a transition beyond its meme origins.

Shiba Inu Price Drops Nearly 10% After Layer 2 Release Shibarium 3

Initially gaining traction as a playful Dogecoin-inspired token, Shiba Inu is now setting its sights on a more serious role in the crypto space. The launch of Shibarium was anticipated to boost the Shiba Inu’s value and propel recovery from recent setbacks.

However, the launch faced unexpected challenges, resulting in a 10% drop in the value of SHIB tokens. Users reported bridging issues and network transaction stalls lasting for hours after the launch, even failing to integrate with a widely-used crypto wallet.

Currently, SHIB is trading above the 38.2% Fib level, a move above the $0.00001005 price area could provide a positive improvement to it.

SHIB price chart. Source: TradingView

This stumble in value has left investors wary, with the potential for further declines dampening hopes for a swift recovery. As momentum teeters towards bearish territory, the cryptocurrency faces a pivotal juncture.

Shibarium’s emergence as an Ethereum L2 solution presents a faster and more cost-effective alternative to its current L1 chain infrastructure. The launch holds the promise of attracting more participants to the Shiba Inu network.

With the mainnet activation, Shibarium aims to foster the use of dog-themed tokens within its ecosystem, featuring assets like BONE, TREAT, and LEASH.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.