SHIB Plunges 9% on Apparent Shibarium Bridge Issues
The launch of a significant tool within the new layer 2 service experienced a turbulent initiation on Wednesday.
Shiba Inu (SHIB) tokens faced a notable 9% decline over the last 24 hours as users encountered widespread challenges related to bridging after the much-anticipated Shibarium network's activation late on Wednesday. According to blockchain data, transactions on the network encountered a delay of at least five hours at the time of writing. During this period, users attempted to transfer 954 ether (ETH), equivalent to $1.7 million, and $750,000 worth of bone (BONE), a governance token associated with Shibarium, to the contract.
Bitsday made efforts to validate the reported issue but was unsuccessful in transferring tokens to Shibarium.
Bitsday confirmation also revealed that users were restricted from sending messages on a community forum on Discord shortly after the initial reports regarding these problems emerged.
Bridges, which are blockchain-based mechanisms facilitating the transfer of tokens across different networks, remain crucial yet inherently susceptible components of the cryptocurrency market.
The less-than-smooth launch of Shibarium disrupts the initial vision of a thriving and cost-efficient ecosystem. This network constitutes part of a comprehensive strategy to establish Shiba Inu as a legitimate blockchain project, moving away from the meme coin reputation it has maintained since its issuance in August 2020.
In the increasingly saturated blockchain landscape, Shibarium enters the scene alongside approximately 50 other networks, each vying to attract users with low fees while primarily focusing on financial services and gaming applications.
The network is designed to leverage bone (BONE), SHIB, and leash (LEASH) tokens for applications developed on the blockchain. It is particularly oriented towards metaverse and gaming applications. However, within the past 24 hours, each of these tokens experienced a decline in value. Bone witnessed a drop of 13%, while LEASH faced a significant decrease of 25%, reflecting a deterioration in community sentiment.