- Shibarium slow start has dampened sentiment for Shiba Inu (SHIB).
- Shiba Inu remains poised for growth in the long term according to analysts.
Since the official launch of its Layer-2 scaling solution Shibarium, Shiba Inu (SHIB) has been faced with certain challenges as an offshoot of certain hiccups on the network.
At the time of this writing, Shiba Inu has lost 1.85% of its market value within 24 hours and is trading at $0.000007993. Many SHIB investors have stood watching as their holdings go into the drain in the face of huge price dips and massive sell-offs.
A further 10% drop is believed to be lurking around as there are still some uncertainties surrounding Shibarium. The network has been facing increasing selling pressures for the last few days. Pending the launch of the Shibarium upgrade, the Shiba Inu ecosystem recorded remarkable activities as the community basked in the excitement of an incoming scaling protocol. This hype and positivity soon faded off as Shibarium hit a dead end shortly after launch.
In July, the price of SHIB saw an upward swing which made the memecoin outperform several other cryptocurrencies in the market. Its positive sentiment began to attract lots of crypto traders. Apart from fixing the problem of scalability and network congestion on the Ethereum (ETH) network, members of the SHIBArmy were confident that the coming of Shibarium will bring a significant price surge with it.
Shibarium Launch Shatters Bullish Predictions For SHIB Price
The launch of Shibarium was expected to trigger increased interest and massive adoption of the network and consequently trigger increased demand for the token. A growth in demand is meant to push the price of SHIB upward in the mid to long-term. The Chief Executive Officer (CEO) of The Stork Dork Adam believed that this speculation would be achievable “as the network capabilities are enhanced, and supply side pressures are reduced.”
Moneyzine.com’s CEO Jon was more bullish in his prediction for Shiba Inu. He hinted at a possible All-Time High (ATH) for the coin after the Shibarium launch. Alexander Kuptsikevich, FxPro analyst said that SHIB will lose two zeros and trade at $0.001 by 2025. Ultimately, many market analysts were prepared for a game-changing rally in the price of Shiba Inu.
Contrary to many of their expectations, shortly after the ETH Layer-2 upgrade occurred, tragedy struck and this raised some concerns about the security of the network. It all started when the protocol experienced an explosion of simultaneous transactions and user influx. The massive community demand strained the capacity of the upgrade and the bridge got stuck.
Core SHIB developer Shytoshi Kusama tried to convince anxious investors that there was no bridge issue and that their funds were secured.
In the long run, Shibarium had to be taken offline to fix the challenges. It has now been brought back online but in private mode. The team is trying to implement a series of robust security enhancement and testing and while talks are already ongoing to make it public again, the sentiment in the ecosystem as a whole is dampened and might impact Shibarium adoption in the long run.
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