Shiba Inu’s Ethereum Layer-2 Shibarium Goes Live, SHIB Tanks 9% On Bridge Issues

After a long wait for Shiba Inu enthusiasts, the developer team finally launched the Ethereum Layer-2 network Shibarium. Similar to various layer-2 networks available, Shibarium aims to tackle the scalability issues inherent in the Ethereum network.

It does so by providing improved throughput and lower transaction fees, even surpassing the claims made by Polygon (MATIC). This initiative intends to enhance the efficiency and user experience of decentralized applications (dApps) and transactions.

Shibarium functions as a proof-of-stake blockchain, utilizing validators and delegators. Validators operate nodes, manage transactions, and generate new blocks, guaranteeing the functionality and overall security of the ecosystem.

Shibarium is a crucial component of the larger strategy to establish Shiba Inu as a credible blockchain project. The developers are enhancing the utility of its tokens through the Shibarium network, with the goal of entering the realm of decentralized finance (DeFi).

Shibarium will leverage BONE, TREAT, SHIB, and LEASH tokens for its blockchain-based applications, potentially boosting the value of these tokens due to rising demand. The network is particularly geared toward metaverse and gaming applications, aligning with the anticipated growth in the NFT sector.

Beyond its role as a cost-effective settlement for DeFi applications, a "DoggyDAO," a decentralized autonomous organization (DAO) operated by token holders, will be established to support projects within the Shibarium ecosystem.

Speaking on the development, Shiba Inu lead developer “Shytoshi Kusama” said: “Many in the tech world, inside and outside the blockchain ecosystem, are promising ‘everything apps’ and full user interactivity in the world of ideas, goods, services and other opportunities. However, any such promise absolutely must start at a place of both community and decentralization. As part of one of the most popular cryptocurrencies on the planet, Shibarium lives at the intersection of those two principles in a way that eludes most other technologies, even many other blockchains.”

But after the Shibarium launch, the Shiba Inu (SHIB) price has come crashing down by more than 8% with the Layer-2 network experiencing several Bridge issues. Bridges are tools within the blockchain realm that facilitate the transfer of tokens across various networks.

As per the blockchain data, transactions on the Shibarium network were stalled for nearly five years. Users had collectively transferred 954 ether (ETH), worth $1.7 million, and $750,000 worth of bone (BONE), a Shibarium governance token, to the contract.