Shibarium “almost ready” to reopen after initial network-related woes
- Shiba Inu’s Shytoshi Kusama said that Layer 2 solution Shibarium testing phase will end on Wednesday.
- Shibarium developers attributed initial network and bridge problems to high demand.
- The relaunch will include additional validators for earning staking rewards on BONE tokens.
Shiba Inu’s Layer 2 scaling solution Shibarium suffered a roadblock on its mainnet launch. Problems with the network left around 1,000 Ethereum and 600,000 BONE tokens locked, leaving users unable to access or recover their funds and pushing down Shiba Inu’s (SHIB) price.
Shytoshi Kusama, leading developer of the Shiba Inu project, attributed the technical problems to high demand and announced a $2 million insurance to cover the value of the tokens paused on the Shibarium bridge. Since then, Kusama has shared new updates on Shiba Inu’s progress in recovering the Layer 2 project and preparing it to go live once again.
Also read: XRP whales eye slight recovery in altcoin despite lag in adoption after SEC vs Ripple lawsuit
Shibarium close to the end of testing phase
According to the latest update from the Shiba Inu community published Tuesday, the ecosystem’s Layer 2 scaling solution has nearly completed its testing phase. After two days of tweaking different parameters, developers behind the blockchain consider that the system is enhanced and optimized.
The key challenge faced by Shibarium at its launch was a large volume of activity from users, according to Kusama. Since this was not anticipated, Shibarium’s operations were affected and user funds were paused on a bridge.
In the update, Kusama says that a new monitoring system and additional fail safes have been introduced in the Layer 2 blockchain. In the event that Shibarium faces a high level of user traffic again, the team is equipped to handle the situation.
Tomorrow [Wednesday] additional validators will go live, giving even more options for you to stake your BONE for a share of the rewards earned for these two roles in our society. Testing will wrap up, and we will prepare for public consumption once again
Kusama said in the blog post.
In addition to bringing Shibarium back, Kusama announced the launch of new validators to increase opportunities for BONE token holders to stake their assets and earn rewards.
The update failed to provide impetus to SHIB, which traded at $0.00000797 at the time of writing, a 0.13% fall compared with the previous day.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
