Shiba Inu’s much-anticipated Shibarium layer-2 network has not had the anticipated impact on the asset’s value. Among the top 100 cryptocurrency projects, SHIB is currently underperforming, experiencing a decline of 23% in the weekly charts. This places it in close proximity to Apecoin (APE), which has decreased by 25.6%, and Pepe (PEPE), which has seen a 23.9% drop. Even Dogecoin (DOGE), a competitor to Shiba inu, has experienced a substantial 16.1% decrease in the weekly charts.
Shortly after its launch, the Shibarium network had to temporarily halt its operations due to an overwhelming surge in traffic, aimed at safeguarding the assets. Nonetheless, the network was able to resume its activities after a nearly day-long pause.
The development team has also taken steps to secure insurance coverage of up to $2 million, providing a safety net in the event of potential challenges in retrieving funds. Despite the high expectations surrounding its launch, Shibarium fell short of meeting the projected impact. This network was expected to be a major milestone in the 2023 cryptocurrency landscape, but its launch faced several delays due to developmental issues. Despite the postponement spanning nearly a year, the network’s unveiling had minimal effect on SHIB’s market value.
Prospects of a Shiba Inu Rebound: Is Recovery on the Horizon?
In addition to the somewhat turbulent Shibarium launch, the cryptocurrency market also underwent a substantial corrective phase. Prominent initiatives experienced losses, with Bitcoin seeing an 11.4% decline in the weekly charts, while Ethereum (ETH) faced a 9.5% drop within the same timeframe. Therefore, the troubled introduction of Shibarium isn’t the sole factor contributing to the decrease in SHIB’s valuation.
For SHIB to regain its footing, it’s imperative for the broader market to recover from its current setback. Nonetheless, there is a recent positive development worth noting: ShibaSwap Bone (BONE), the governance token linked to Shibarium, displayed a surge in value today. Within a 24-hour span, this derivative token of Shiba Inu experienced a notable increase of 5.3%. Despite the decline in SHIB’s market price, the implementation of Shibarium could potentially drive an upswing in its value over time. The new network introduces practical applications that could enhance the project’s real-world utility, thereby boosting its demand.
Furthermore, there remains anticipation surrounding the forthcoming unveiling of the new token burn mechanism by the team. This mechanism is rumored to eliminate trillions of Shiba Inu tokens from circulation. When combined with a heightened demand scenario, this action could significantly elevate SHIB’s price, providing the much-needed upward momentum.