Shibarium, the Layer 2 mainnet scaling solution for Shiba Inu (SHIB), experienced a hiccup on its launch day when $1.8 million worth of Ether (ETH) became stuck on the cross-chain bridge due to lagging transactions caused by high demand.
However, the issue was resolved by developers and Shibarium remains in private mode, undergoing intensive testing by the developer team. Shiba Inu’s lead developer, Shytoshi Kusama, recently published an update on Shibarium’s progress.
According to Kusama, Shibarium is functioning smoothly in private mode and a new upgrade, developed in collaboration with the Alchemy team, is set to increase its capacity by 1500%. “We are scaling up in multiple ways,” Kusama stated.
Despite the setback, SHIB’s value has only decreased by 3.9% in the last 24 hours. Kusama also revealed that the blockchain will be reopened for public use soon, as the SHIB developers have been instructed to take a day of rest by the enigmatic SHIB Savior.
Over the past two weeks, SHIB has been experiencing a period of phased consolidation, with its value decreasing by 22% due to the volatile conditions of the crypto market.
Shiba Inu Keeps on Falling
The bears have certainly had their way with SHIB, as evidenced by a sharp decline in three key on-chain metrics: large transactions have decreased by 5.75%, net network growth has fallen by 0.38%, and the number of holders making a profit has dropped by 16%.
At the time of writing, SHIB is trading at $0.00000808, according to CoinGecko. Despite experiencing a 3.6% decrease in value over the last 24 hours, SHIB has managed to maintain its key support level of $0.000008. However, its price is highly correlated with that of Binance Coin (BNB), which recently reached a yearly low of below $210.
Experienced crypto traders on Twitter believe that the bottom of SHIB’s price is likely to be around the major support level of $0.000007. If this price range holds, it would bring SHIB back to its May 2021 levels and create a historical parallel with its first major spike in value.
