At long last, the Shiba Inu team has announced the much-anticipated launch of Shia Inu's new layer 2 solution, Shibarium.
According to a blog post published by Shytoshi Kusama, the lead developer of the Shiba Inu ecosystem, Shibarium launched on Thursday, August 17, 2023 with a bit of struggle.
Shibarium is the new layer-2 solution to Shiba Inu, which is expected to make the chain and its transactions cheaper and more scalable than Ethereum.
However, there are a few issues and technical difficulties that plague Shibarium still.
Let's start from the first:
Peckshield in a recent tweet, had some disturbing updates about Shibarium.
It turns out that Shibaruim had a rocky start after Peckshield reported that the new layer-2 solution has about $1.7 million worth of Ethereum stuck in the Shibarium Bridge.
This Shibarium Bridge features smart contracts that transfer money from Ethereum into the layer-2 solution. In the process of these transfers, about $1.7 million ETH got stuck.
The launch of Shibarium was expected to be a good thing for the market in general, with the memecoins moving farther up than the rest of the market's cryptocurrencies.
However, the opposite is the case.
Bitcoin and Ethereum are deep into the red zones, with more than 3.5% in weekly dips respectively.
Memecoins in particular, are facing some pretty rough weather as well, with SHIB plummeting 9.56% over the last seven days, Dogecoin is down by 10.82%, with BONE and LEASH down by a whopping 17% and 25% respectively, as Peckshield highlights in another tweet.
Sadly, this is the direction the Shiba Inu ecosystem is headed.
According to a tweet from the Blockchain security platform, Beosin Alert, users are advised to stop transacting on Shibarium.
The drop in the price of memecoins across the market is also understandable, given that according to Shibariumscan.io, there have been no new transactions since the news of $1.8 million worth of ETH being stuck first broke.
According to a tweet from @shroom_daddy, the issues Shibarium currently faces are due to a "nonfunctional RPC".
RPCs stand for "Remote Procedure Call", and are protocols that allow blockchain nodes to communicate to one another.
However, the Shibarium lead developer, Shytoshi Kusama denied this fact. He went further to say that Shibarium's technical difficulties arose because of the "massive amount of traffic" it received on launch.
However, according to another disturbing and now-deleted tweet from Kusama, there are serious concerns about the possibility of recovering such a massive amount of ETH that remains stuck in this bridge.
"We F___ up," the tweet says, "we can't recover the ETH bridged".
Take a look at the chart below.
According to the chart above, Shiba Inu had just made another higher high at $0.00001131, after its rejection from $0.00001027, and bouncing off $0.00000875.
However, the decline after the Shibarium launch has brought SHIB face to face with the $0.00000875 zone again, as it struggles to stay afloat.
The $0.00000875 is an important zone because a break below would signal a lower low, and a double-bottom formation.
These two patterns signify that the bears are fully in control, and could mean a price decline straight down to the $0.00000761 zone.
In short, SHIB has to stay above $0.00000875 for the bulls to retain their control over the market.
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