Shiba Inu’s newly launched layer-2 blockchain, the Shibarium network, has achieved a significant milestone, surpassing 1 million wallets. This remarkable feat comes in a meteoric rise since the network’s relaunch. The official team announced this achievement in a blog post on September 3, signaling the rapid growth of the network. This milestone marks a notable increase in wallet adoption, with over 900,000 wallets added since the relaunch of Shibarium on August 28.
Shibarium hit the milestone after two weeks of launch
The network was able to hit this milestone within just two weeks of the network’s initial launch, despite encountering some technical issues during its early days. Data from the its blockchain explorer reveals nearly 100,000 transactions on the network as of 5:04 AM UTC on September 3. The network reached its peak activity with 132,000 transactions on August 25, indicating a robust level of user engagement. However, while network activity has soared, the total value locked (TVL) on the Shibarium network has yet to experience a similar surge.
At the time of this publication, its TVL stands at a modest $1.06 million. This suggests that users are predominantly deploying relatively small amounts of capital on the network, despite the significant number of wallets. In response to these developments, the Shibarium developers have initiated collaborations with various third-party bridges. These partnerships aim to assist investors in seamlessly bridging other tokens onto the new blockchain, potentially expanding the ecosystem’s offerings.
Furthermore, the team has announced plans to renounce the contract for its governance token, Bone (BONE). This move aligns with the project’s commitment to decentralization and community-driven governance. Additionally, Shibarium is actively seeking to onboard more validators to enhance the network’s security and reliability in the coming weeks. Since September 1, Shibarium users have gained the ability to utilize a range of tokens, including Shiba Inu (SHIB), Bone (BONE), and Leash (LEASH), for lending, borrowing, and staking. These activities allow users to earn rewards within the Shibarium network.
Tokens face challenges as volatility increases
Despite high expectations among Shiba Inu holders for a significant price surge in various ecosystem tokens following the launch of Shibarium, the actual price action has not met these anticipated levels. SHIB, BONE, and LEASH tokens, in particular, have not seen the expected uptick in value. While SHIB experienced modest gains leading up to the Shibarium launch, its price has since dipped by approximately 20% following a challenging start on August 16, according to data from CoinGecko.
The situation is similar for other Shiba Inu ecosystem tokens. The price of BONE has fallen by 15% over the past 14 days, while LEASH has experienced a 14.2% decline within the same timeframe. The Shibarium network’s rapid growth in wallet adoption is an impressive achievement, signaling strong interest and engagement from users. However, the challenge lies in translating this heightened activity into increased total value locked within the ecosystem.
The collaboration with third-party bridges, plans for token contract renouncement, and the addition of more validators suggest that the Shibarium team is committed to addressing these challenges and further developing the network. Despite initial price optimism, the Shiba Inu ecosystem tokens have faced a volatile market, with price fluctuations not meeting the expectations of investors. The coming weeks and months will likely be crucial in determining the long-term success and adoption of the Shibarium network and the Shiba Inu ecosystem as a whole.
Source: https://www.cryptopolitan.com/shibarium-network-hits-one-million-wallets/