SHIB Exchange Reserve Hits Lows During Shibarium’s Recovery

Shibarium’s quick recovery efforts pay off in a 21% upswing amidst plummeting Shiba Inu exchange reserves.

by Tadas Klimasevskis. Fact checked by: Finn Miller, Editor: Nazar Kuzmyn

Published: April 23, 2024 │ 4:00 PM GMT

Shiba Inu's seeing red making him go dizzy. — *Created by Kornelija Poderskytė from DailyCoin*

Shiba Inu reserves on exchanges plunge to below 150.7T amid Layer-3 chain news.
Animoca Brands, Polygon, Woodstock funds dig into the $12 million funding round.
Shibarium witnessed a network outage on Sunday, top developer shares why.

In the wake of announcing the upcoming Layer-3 blockchain, Shiba Inu’s (SHIB) Layer-2 chain Shibarium went through a short outage last weekend. In the early hours of April 22, 2024, Shibarium developer Kaal Dhairya notified the community about the interruption of service on Shibarium Layer-2, which came down to discrepancies between Shibarium validators.

Shibarium L2 Back Online, But There’s A Catch

The networking issues between Shibarium validators immediately turned off the lights for operations like external Remote Procedure Calls (RPCs) and ShibariumScan blockchain explorer, among other key services. While Shibarium is up and running, last weekend’s chain outage could still impact developers working on the infrastructure level on Shibarium, says Shibarium developer Kaal Dhairya.

There was a temporary shibarium outage caused because of networking issues amongst the validators. Network is back up and running now, some services like shibariumscan or external RPCs can still remain down until the steps provided are implemented. If you’re an external team…
— Kaal (@kaaldhairya) April 22, 2024

To clear this issue, the Shibarium developer asked the infrastructure builders to “reach out so that we can streamline comms with you over shared telegram / slack channels.” Upon further investigation by DailyCoin, Shibarium’s on-chain data explorer is back online.

Shiba Inu’s Exchange Reserve Is Getting Scarce

Meanwhile, Shiba Inu investors continue to gradually reduce their Shiba Inu (SHIB) assets stored on crypto exchanges. The latest on-chain data by blockchain analytics firm CryptoQuant reveals a long-term tendency that was prevalent since early 2023. Depicted in the blue line in the following graphic, the total number of SHIB tokens in crypto exchange reserves has plummeted to 150.7 trillion tokens.

Compared to last month, Shiba Inu exchange reserves have slimmed by another 5.7T over the past 30 days. While this trader behavior trend lasts, it represents a long-term sentiment for traders who accumulate SHIB on self-custodial wallets in contrast to pouring the Shiba Inu tokens into major exchanges for a possible sell-off.

On the Flipside

Shiba Inu’s price spiked 21% following the Layer-3 blockchain news with pioneering Fully Homomorphic Encryption (FHE) technology and the successful $12M funding round.
However, this SHIB price surge didn’t erase the $16 million gap in combined liquidity books, as pending SHIB sales outscore bids $62 million to $46 million, according to CoinPaprika.

Why This Matters

Shiba Inu stands out from the crowd in the meme currency department due to its flexible utility cases, being the only meme coin developing a Layer-3 project on top of an existing Layer-2.