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Shiba Inu (SHIB) team has relaunched the Shibarium L2 network in private mode after the initial launch was plagued with technical issues. Although the SHIB price remains stable at $0.0000008, indicators on the chain may suggest that bulls could take action at any moment.
Moving Process in SHIB!
Shiba Inu launched the Shibarium mainnet, a Layer 2 scaling solution that handles millions of transactions, on August 16th, following months of testing. However, it was quickly halted after a series of technical issues. Shiba Inu holders are now taking their tokens under their own supervision, probably due to the fear of a security vulnerability in the network.
Despite the assurances of a $2 million insurance plan, the amount of money Shiba Inu has deposited into crypto exchange wallets has dropped to the lowest level in over a year. Data from Cryptoquant shows that Shiba Inu’s reserves started decreasing right after the launch of the Shibarium mainnet on August 16th and continued to decline on August 17th.
However, the data also indicates that SHIB reserves have not been this low since February 2022. Reserves track real-time changes in the total SHIB balance held in prominent crypto exchange wallets. The shared graph shows that significant decreases in reserves occurred before the recent upward trends in Shiba Inu prices on August 5th and August 12th.
Between August 17th and August 26th, Shiba Inu holders withdrew 1.8 trillion SHIB tokens worth $14.5 million at the current market price of $0.000008. This represents more than 10% of Shiba Inu’s average trading volume last week. This situation highlights the potential supply congestion that could disrupt the SHIB price after a successful re-release of Shibarium, following the reduction of FUD and an increase in market demand.
Effects of Shibarium on SHIB!
Many participants of the Shiba Inu network have refrained from conducting transaction activities in recent weeks due to concerns over the latest network vulnerabilities in Shibarium. The number of daily active addresses on the Shiba Inu network has decreased since August 16th. As of August 26th, it dropped by 56% to 3,647 compared to the 8,214 active addresses recorded on August 16th.
Active addresses estimate the daily number of participants conducting economic transactions on a blockchain network. This signifies a significant decrease in the number of investors using SHIB for transactions. Not surprisingly, the SHIB price has continued to follow a neutral trend within the $0.0000008 range in the past few days.
As a result, the future movement of the SHIB price will heavily depend on users returning to the network. The correlation between the decrease in market demand due to the Shibarium failure and the potential impact of a successful re-release of Shibarium on the SHIB price could indicate a change in the game.
