Shibarium Wallets Surge 200% to 306K in One Day: Limited Impact on Shiba Inu ($SHIB) Price
Rebeca Moen Aug 30, 2023 11:30
Shiba Inu's Shibarium Layer 2 network has experienced a 200% increase in wallet addresses, processing 524,559 transactions, and mining 368,891 blocks. The network's mainnet and cross-chain bridges are operational, enabling quick withdrawals. Despite this, the Shiba Inu price has only increased by 2.5% in the past 24 hours.
Shiba Inu's Layer 2 network, Shibarium, has witnessed an explosive growth in wallet addresses, reaching 306,205 as the time of writing. This marks a staggering 200% increase from just over 100,000 wallet addresses reported yesterday. The network has also processed 524,559 transactions and mined 368,891 blocks, according to the latest data from Shibariumscan.
A Meteoric Rise Following Operational Mainnet
Just yesterday, Shibarium reported crossing the 100,000 wallet address milestone, along with completing over 445,000 transactions. This data was confirmed by Shibariumscan, the network's block explorer. The surge in activity comes on the heels of an announcement by Shiba Inu's lead developer, Shytoshi Kusama, who stated that Shibarium's mainnet and cross-chain bridges became fully operational as of August 28, 2023.
Overcoming Initial Hurdles
Shibarium, a fork of Polygon, initially encountered technical difficulties due to an unexpected spike in user activity. The network's fail-safe mode was activated to safeguard users' funds. Within the first 30 minutes of its launch, nearly half of the platform's monthly allocation of 400 million compute units was consumed. However, partnerships with entities like Alchemy led to a 1500% scaling of operations, ensuring the network's ability to accommodate its rapidly expanding user base.
Functionality and User Experience
As per Shytoshi Kusama's statement on August 28, the Shibarium mainnet and its cross-chain bridges are now fully functional. Users can execute withdrawals of various assets, including ETH, Shib, Leash, and WEth, within a time frame of 45 minutes to 3 hours. Withdrawals involving the network's native token, Bone, may take up to 7 days.
The Layer 2 Advantage
The Layer 2 network aims to mitigate the congestion and high transaction fees associated with the Ethereum mainnet. Layer 2 solutions are increasingly popular in the crypto space, offering scalability and lower transaction costs, which are beneficial for decentralized finance (DeFi) applications and non-fungible tokens (NFTs).
Implications for the Shiba Inu Ecosystem
Shibarium's rapid adoption could potentially attract more developers to its platform, thereby enhancing its utility and value proposition. The Shiba Inu ecosystem, initially known for its meme cryptocurrency status, is evolving to include faster and more cost-effective transaction options through Shibarium.
The Limited Impact on Shiba Inu ($SHIB) Price Despite Shibarium's Growth
Despite the positive news of a surge in Shibarium's wallet addresses, the price of Shiba Inu ($SHIB) has only increased by 2.5% over the last 24 hours. This modest gain lags behind Bitcoin, which saw a 6% uptick in the same period, driven by news of Grayscale's legal victory over the Securities and Exchange Commission (SEC).
Conclusion
The exponential growth in Shibarium's wallet addresses and transactions signifies a robust user engagement and adds another layer of utility to the Shiba Inu ecosystem. As Layer 2 solutions continue to gain traction, Shibarium's recent milestones could serve as a bellwether for the broader adoption of scalable blockchain networks.
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