• Shibarium launch faced bridge issues, resulting in millions of dollars worth of tokens getting stuck and the inability to transfer funds between Ethereum mainnet and Shibarium.
• SHIB’s price has taken a sharp hit since the mainnet launch, trading at nearly 53% below its recent high.
• The rocky start to the Shibarium launch risks eroding investors’ confidence and adds to the crowded layer-2 landscape’s technical challenges.
The much-anticipated launch of Shiba Inu’s layer-2 scaling solution, Shibarium, has not gone as smoothly as planned. Just hours after the mainnet went live on Aug 16, the network’s bridge started experiencing major issues. This has resulted in millions of dollars worth of tokens getting stuck and the inability to transfer funds between Ethereum mainnet and Shibarium. As per blockchain security firm PeckShield, around 956 ETH (nearly $1.7 million) and $750,000 worth of BONE tokens are locked in the faulty Shibarium bridge contract.
The technical snag has yet to inspire confidence among SHIB investors. Prices have taken a sharp hit since the mainnet launch. SHIB is down nearly 9% in the last 24 hours, trading at $0.000008985 – 53% below its recent high two days back – wiping out nearly two weeks of gains made in the run-up to the Shibarium release.
Investor Confidence Erodes
SHIB’s price trajectory over the past month has been closely tied to developments around the Shibarium launch; however with its network rendered temporarily unusable prices have snapped back sharply causing growing dissent among Shiba Inu investors. While lead developer Shytoshi Kusama has acknowledged the problem details remain scarce and no ETA is available for a fix which is causing investor confidence to erode further
The stuttering start risks eroding investors’ confidence and adds to an already crowded layer-2 landscape that faces significant technical challenges in early stages due heightened complexity when compared with base layer protocols like Ethereum itself
The sharp price reaction underscores how much of SHIB’s valuation was based on speculative appeal of Shibarium; however given this rocky debut it remains unclear whether or not Shiba Inu can overcome these issues or if it will continue facing difficulties going forward