Shiba Inu price dips over 5% following the launch of Ethereum L2 chain Shibarium

Shiba Inu price surprisingly took a turn for the worse, trading at $0.00000935, down by almost 6% in the last hour.
Shibarium is the designated Ethereum layer-2 solution developed by the Shiba Inu team as a means of providing cheaper and faster transactions using SHIB as the fee token.
Awaiting the launch of Shibarium, the network noted a surge in new addresses, resulting in network growth shooting up by 84% within three weeks.

Shiba Inu price began as a meme coin, but the Dogecoin-inspired token is now establishing its presence as a legitimate cryptocurrency network with the launch of its Ethereum-based layer-2 (L2) blockchain. Titled Shibarium, the chain will act as a medium for optimum utilization of dog-themed tokens.

Shiba Inu price crashes against expectations

Shiba Inu price is set to potentially rally and recover the recent losses following the launch of the highly anticipated Shibarium. The blockchain is Shiba Inu's first attempt at expanding the meme coin's reach. With an Ethereum L2, it will be able to attract more users and investment into the ecosystem.

Since Shibarium is a layer-2 solution on Ethereum, it is significantly faster and cheaper than base layer-1 (L1)chains. Shiba Inu presently operates as an L1 chain, and the launch of Shibarium could potentially bring more users to the network. Furthermore, with the mainnet of the blockchain going live, Shibarium would promote the use of dog-themed tokens within the Shiba Inu ecosystem, including the likes of BONE, TREAT and LEASH.

SHIB/USD 1-day chart

All of this was supposed to push the price up, but the opposite of the expected outcome occurred, and the Shiba Inu price crashed. Down by nearly 6% in the past hour, the altcoin is currently trading at $0.00000935. With every red candlestick, the meme coin is losing the potential for recovery with price indicators, including Relative Strength Index (RSI) as well as the Moving Average Convergence Divergence (MACD).

A further decline in the price indicators could cause the investors to lose their hope for recovery straight away since the momentum would turn bearish.

Interestingly this reflects against the expectations from the chain, which was observing a sudden jump in the rate thatnew addresses are formed on the network. This measures whether or not the project is finding traction amongst crypto investors.

Shiba Inu network growth

Over the past three weeks, this network growth has noted an 84% surge, suggesting investors' interest was rising ahead of the Shibarium launch. Going forward, as the users get acclimatized to the network, it could end up pulling the price up toward the end of the month.

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram