Shiba Inu's price surge may no longer be boosted by Shibarium, as revealed by the following reason.
In recent days, Shibarium, the layer-2 blockchain of the Shiba Inu (SHIB) ecosystem, has encountered a significant security incident. Malicious attackers launched a complex hacker attack, resulting in the theft of over 2 million euros in Shiba Inu and Ethereum tokens.
This incident led the team to pause all staking functions, freeze certain tokens, blacklist the hacker's wallet, and change the compliance status and operational status of Shibarium to address the security breach.
The security breach has undoubtedly affected the transaction count on Shibarium. In the last week of August, daily transaction volume on Shibarium slipped from 1.3 million to 9,590. As of Sept. 16, Shibarium recorded 11,600 daily transactions, a sharp decline from its daily average of 3.5 million to 4 million last month.
The low user engagement on Shibarium has greatly affected the transaction count in recent days. Market participants did not flock to Shiba Inu following its immediate dip into the red zone after reports of the malicious attack on Shibarium.
The drop in transaction volume on Shibarium has also impacted Shiba Inu's price outlook. With near-zero transaction volume, Shiba Inu's price cannot rely on Shibarium to support a rally.
To boost prices, Shiba Inu might rely on increasing its deflationary burn mechanism. The burn mechanism in Shiba Inu refers to a process where tokens are destroyed, potentially reducing supply and increasing the token's value.
Despite reassurance from developer Kaal Dhairya about the prevention of the attack to steal millions of BONE tokens, users' confidence in Shibarium appears shaken. It might take a while to rebuild user confidence and for transactions to pick up again on Shibarium.
As of press time, Shiba Inu's price is $0.00001298, down by 0.31% in the last 24 hours. Shiba Inu's trading volume has also dipped by 12.6% to $198.91 million in the last 24 hours.
Shibarium posted its highest peak for the month on Sept. 5, with 1.26 million transactions. However, the security breach over the weekend has probably worsened issues for Shiba Inu's price and transaction volume. It remains to be seen how Shiba Inu and Shibarium will recover from this setback.
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