Shiba Inu Raises $12M for Blockchain Ambitions Amidst Network Decline

The Shiba Inu team has secured $12 million in funding through the sale of its TREAT token for the development of a new layer-3 blockchain on top of its existing layer-2 Shibarium network, built on Ethereum.

Shiba Inu's $12 Million Fundraise Sparks Blockchain Ambitions, While Network Activity Declines

In a significant development for the Shiba Inu (SHIB) ecosystem, the project team has secured $12 million in funding to advance the creation of a new layer-3 blockchain. This strategic move marks a step forward in the project's ambitious roadmap, aiming to enhance the scalability and utility of the Shiba Inu ecosystem.

The fundraising, which concluded earlier this month, was led by a consortium of notable venture capital firms, including Polygon Ventures, Mechanism Capital, and Animoca Brands. The completion of the funding round at valuations reportedly reaching $200 million underscores the growing interest and confidence in Shiba Inu's long-term prospects.

The upcoming TREAT token, a cornerstone of the new layer-3 blockchain, will serve a dual function as both a utility and governance token. Its integration into the ecosystem will empower token holders to participate in crucial decision-making processes shaping the future of the blockchain.

The new layer-3 solution will be built upon Shibarium, Shiba Inu's existing layer-2 blockchain operating on top of the Ethereum network. This multi-layered architecture aims to address scalability challenges and optimize transaction speeds, catering to the growing demands of the Shiba Inu ecosystem.

Despite these promising developments, overall activity on the Shiba Inu network has experienced a noticeable decline. The number of transactions processed on the network has witnessed a substantial drop, raising concerns among some observers. The long-term health and prosperity of the Shiba Inu ecosystem hinge on maintaining a vibrant and active network, making this decline a cause for attention.

Compounding these concerns is a recent outage affecting the Shiba Inu network. While the core Shibarium network has been restored, certain users continue to encounter difficulties attributed to lingering issues with validators and external services. The development team is diligently working towards resolving these issues and has emphasized the need for improved communication from external teams to expedite a seamless resolution.

Notwithstanding these challenges, the weighted sentiment for SHIB in social media circles remains positive, indicating that favorable comments outweigh negative ones. Additionally, the surge in social volume suggests a spike in popularity for Shiba Inu across various social platforms. At the time of writing, SHIB's market value stood at $0.0000272, registering a modest 0.93% growth in the preceding 24 hours. However, trading volume has decreased by 36.46% over the same period.

The Shiba Inu team's ambitious plans to develop a layer-3 blockchain hold the potential to revolutionize the project's capabilities and drive significant growth. The successful fundraising round is a testament to the project's growing credibility and the confidence of investors in its long-term vision. However, the team must address network activity concerns and resolve persistent issues to maintain the momentum and foster a thriving ecosystem.

As the Shiba Inu project continues to evolve, it will be crucial for the team to maintain transparency and communicate effectively with the community. By addressing network stability issues and executing their ambitious roadmap, Shiba Inu can position itself as a formidable player in the blockchain landscape and deliver value to its ever-expanding community.