Shibarium, Shiba Inu’s layer-2 network, is still waiting for a reboot. At the time of going to press, Shibarium was still not producing any blocks, as Shibariumscan.io’s block explorer shows. As a reminder, Shiba Inu’s highly anticipated layer-2 went offline minutes after its official launch on Wednesday.
In the wake of the unexpectedly high traffic that temporarily took the Shibarium network offline, the Shiba Inu team is diligently working on a solution to restore normalcy, the devs assured today. With many investors keeping a close eye on developments, there is one notable promise from the team – they emphasize that users’ funds are safe. When Shibarium went offline, $1.7 million was stuck in the ETH Bridge.
Shibarium, which is a fork of the renowned Polygon network, saw an unprecedented number of “compute units” of traffic shortly after its launch. This influx resulted in, as Shiba Inu developer Kaal Dhairya put it, “thousands upon thousands of contract creation and normal transactions IN A BLOCK.” As a result, the Shibarium network activated its failsafe mode and ceased operations to ensure the safety of assets within the blockchain.
In an update today, SHIB developer Kaal Dhairya wrote in a blog post: “Shibarium received millions of ‘compute units’ of traffic in a matter of moments. At that point, Shibarium’s amazing system went into failsafe mode and paused to make sure the funds were safe…. And they are.”
The transparency of the Shiba Inu team continues to be evident as they not only recognize the current challenges, but actively seek expert assistance to address them. But the scaling issues seem to be bigger than expected, as the network is approaching a 48-hour downtime (with short interruptions).
When Shiabrium will be back online is still unclear, Dhairya announced: “Tomorrow I will send another update to inform our army of the status of Shibarium Scaling!”
Shiba Inu (SHIB) Shows Resilience
The Shiba Inu price briefly fell back to $0.00000727 yesterday amid the market-wide crash, posting a 20% drop. However, SHIB managed to defend a new higher low (albeit just barely) – a bullish sign.
In addition, SHIB bulls have succeeded in ushering in a recovery. At the time of writing, SHIB was trading at $0.00000838, currently trading just above the 23.6% Fibonacci retracement level at $0.00000833. A daily close above this price level would be a bullish exclamation point. This would open the possibility of a move up to the 200-day EMA at $0.00000935, which was lost on Wednesday as a result of the Shibarium stall.
A quick bounce of the 200-day EMA would be a strong sign. As then, the area between the 38.2% Fibonacci retracement level at $0.00000979 and the psychologically important $0.00001 level would come into focus. This area could be highly contested.
However, if a breakout succeeds, the next targets are $0.00001096 (50% Fibonacci), $0.00001213 (61.8% Fibonacci) and $0.00001381 (78.6% Fibonacci) before the yearly high at $0.00001593 becomes the final hurdle for a bullish breakout of SHIB.
Featured image from iStock, chart from TradingView.com