The Shibarium network, a layer-two scaling solution on the Ethereum (ETH) chain and focused on the Shiba Inu project, has suffered a major blow. Earlier on Monday, the Shiba Inu team announced that it is no longer endorsing the Shibarium network.
Why Is Shibarium no Longer Supported By Shiba Inu?
According to the announcement, the Shiba Inu ecosystem is best represented by Ryoshi’s vision of decentralization, true utility, and fairness for all holders. The recent Shibarium network attack, in which the team responded with 4.6 million tokens freezing, has raised eyebrows on the decentralization of the Shibarium ecosystem.
“As we said before: we respect those using Shibarium, but we no longer endorse it because it doesn’t align fully with Ryoshi’s vision — which values decentralization, true utility, and fairness for all holders,” the announcement noted.
Although the token freeze helped the users not to lose their funds, the Shiba Inu team stated that decentralization is a major part of the SHIB ecosystem.
What’s the Market Picture?
The notable blow to the Shibarium project will have a notable impact on its bid to expand to global markets. According to market data from DeFiLlama, the Shibarium network has seen its total value locked (TVL) drop to $1.81 million year-to-date.
The mainstream adoption of Memecoins has also diluted the Shiba Inu buyers in the past year. With the Shiba Inu team distancing themselves from the Shibarium project, its mainstream adoption is likely to stall even during the highly anticipated altseason.
Meanwhile, SHIB price has continued to consolidate in a symmetrical triangle, possibly preparing for a major bullish breakout.
