Shibarium closed last week due to heavy traffic, leading to a sharp decline in the prices of both SHIB and other ecosystem tokens. While the altcoin market enters September with a red tint, network growth metrics offer a positive outlook.
Altcoin whales accelerate as Shibarium user count climbs to record
Shiba Inu, the second largest meme token, has achieved milestones since its Layer-2 ecosystem launched Shibarium. But the exaggerated demand brought Shibarium to the brink of collapse at one point. As we reported as Kriptokoin.com, it took a few days for the altcoin network to become active again. Meanwhile, prices fell by double digits.
Altcoin withdrawals from the Shibarium bridge are now live and available to users, weeks after a much-hyped launch quickly ended after the network was riddled with software bugs that led to millions of dollars in uncertainty.
Network metrics rising, but TVL unstable
According to data from blockchain explorers, there were approximately 100,000 transactions on August 31. The peak was previously seen on August 25 with 132,000 transactions. Starting Friday, users can use SHIB, BONE and other tokens to trade on Shibarium.
Currently, Shibarium’s locked value stands at just $1.26 million. This shows that the average user allocates very little capital to the Layer-2 network. According to data, this is less than 1% of the $35 billion locked in various Blockchains in the crypto ecosystem.
An anonymous altcoin whale raises his hand amid crisis
Elsewhere, an anonymous SHIB whale made an unusual move earlier today. The giant investor moved SHIB worth $38 million at one time. Transaction data shows that the whale first moved $160,000 in SHIB, then $37.4 million in SHIB to a new wallet on Ethereum.
Meanwhile, Shibarium’s launch appeared to be a “buy the rumor, sell the news” affair. The reason for this was the situation of foreign exchange inflow and outflow. According to on-chain data, SHIB’s stock market inflow was 29.25 million. This details the reason behind whale transactions.
What do on-chains say about the Shiba Inu? Are altcoin investors interested?
Santiment reported that SHIB tokens used between August 30-31 increased according to circulation. Currently, approximately 7.88 trillion altcoins have been traded. This means that the previously overlooked status of the Shiba Inu has changed.
Market Value to Realized Value (MVRV) Z score decreased to -3.43. The MVRV Z-score is a function of the difference between an asset’s market value and its realized value.
High values of the Z score mean that an asset may be overvalued. However, the fact that the MVRV Z score is in the negative zone means that SHIB may be undervalued and there may be a buying opportunity at its current value.
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