Shibarium Weathers Massive Influx, Shytoshi Kusama Claims “All Is Well”

According to the project’s lead developer, Shibarium, the layer-2 scaling solution for the Shiba Inu (SHIB) has experienced a significant influx of users and transactions following its recent launch. Shibarium, the newly launched layer-2 scaling solution for the Shiba Inu (SHIB) cryptocurrency, has faced technical difficulties due to an unexpected surge in user activity and transaction volume. 

Read More: Shiba Inu’s Layer-2 Blockchain Shibarium Is Live

In a recent blog post, the project’s lead developer, Shytoshi Kusama, addressed the situation. Kusama stated that the issues were not inherent to Shibarium itself. Instead, they resulted from the massive influx of users and transactions that coincided with the platform’s launch.

“Our team has been working to scale and bring up the chain again to the extent that we can handle the influx of our decentralized nation-state,” Kusama wrote.

Unprecedented Traffic Levels

Kusama provided insight into the scale of traffic that Shibarium experienced. According to analytics from Alchemy, Shibarium saw over 160 million compute units in about 30 minutes, a pace that matches the most active layer-2 blockchains currently in operation.

“On our enterprise plan with Alchemy, we are allotted 400 Million compute units a MONTH. At launch, we experienced 160+ Million compute units in approximately 30 minutes. If we continue at that rate, we are expected to reach billions of compute units daily, on par with the most active layer-2 blockchains. Although we expected a busy moment, we never expected this much traffic instantly,” Kusama explained.

The official Twitter account for the Shib ecosystem shared that Kusama intends to incorporate Self-Sovereign Identity (SSI), a blockchain-based digital identity akin to passports, into all Shiba Inu projects. 

🔓 Unlocking a new digital era, Shibarium will restore and enhance trust! 🚀 @ShytoshiKusama unveils the plan to integrate SSI Self-Sovereign Identity in all Shiba Inu projects during his discussions with @CoinDesk #SummerOfShibarium 🔥 https://t.co/tqWKCM5Nuw

— Shib (@Shibtoken) August 3, 2023

SHIB Price Technical Analysis

At the time of writing, Shiba Inu is trading at $0.000008758, a 10.53% decrease over the last 24 hours. The surge in trading volume supports the ongoing correction phase, which is also reflected in the technical indicators. 

The Moving Average Convergence Divergence (MACD) indicator currently displays a bearish crossover. Meanwhile, the Relative Strength Index (RSI) has dropped to the midpoint.

SHIB/USD 1-day price chart, Source: Trading View

If the upward trend is above the 200-day Exponential Moving Average (EMA), the reversal rally could recapture the $0.000010 mark. Shiba Inu holds the 15 position in CoinMarketCap’s rankings, with a market capitalization of $5,151,072,084. The circulating supply of the SHIB/USD cryptocurrency pair stands at 589,346,914,631,298 SHIB.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.