Shiba Inu Tumbles 12% In Single Day Amid Wider Crypto Downturn, Underperforms Dogecoin, Pepe Coin

Shiba Inu (CRYPTO: SHIB) on Friday experienced a significant decline of 12% in the last 24 hours, making it one of the worst-performing meme coins compared to Dogecoin (CRYPTO: DOGE) and Pepe Coin (CRYPTO: PEPE).

What Happened: This downturn comes shortly after the Shiba Inu team launched the long-awaited Ethereum (CRYPTO: ETH) layer 2 solution, known as the Shibarium. DOGE, SHIB were down 8% and 6.2% in the last 24 hours.

However, just a few hours after the launch, reports emerged regarding technical difficulties with the Shibarium bridge – a crucial component designed to facilitate the smooth bidirectional transfer of assets with Ethereum.

According to an alleged screenshot shared by a user, the block scanner within Shibarium experienced technical issues, preventing users from querying their bridged balance over the Remote Procedure Call (RPC) interface. This obstacle has hindered users’ ability to access and retrieve information relating to their transferred tokens within the Shibarium network.

See More: A Stay At The Floating Palace From James Bond's ‘Octopussy’

Why It Matters: In addition to Shiba Inu’s struggles, Bitcoin (CRYPTO: BTC) also witnessed a significant plunge, dropping below the $26,000 mark for the first time in two months. Heightened risk aversion among investors, driven by rising global government bond yields reaching their highest levels in 15 years, has contributed to the apprehensive sentiment in the market.

The downtrend of Bitcoin can be traced back to the news of China’s Evergrande Group, a major property developer, filing for Chapter 15 bankruptcy protection in New York. Simultaneously, reports circulated regarding Elon Musk’s SpaceX, which recorded a substantial devaluation of its Bitcoin holdings, amounting to $373 million.

Price Action: At the time of writing, SHIB was trading at $0.000008368, according to Benzinga Pro.

Photo Courtesy: Shutterstock.com

Join Benzinga’s Future of Digital Assets in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.