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Shibarium Not Abandoned: Community Leader Defends Layer 2’s Operational Status

Despite K9 Finance's departure from Shibarium following reliability concerns, community members assert the layer 2 network remains fully operational with thousands of daily transactions.

JM
by Jacob Marquez · Learn Desk
Published August 22, 2026 · 3 min read

Long-time member of the Shiba Inu community Mazrael has challenged recent claims that Shibarium, the layer 2 blockchain built on the Shiba Inu ecosystem, has been abandoned and is no longer functional. The defense comes in response to K9 Finance, a project that operated on Shibarium, announcing its decision to sunset operations and migrate to the Base blockchain, citing persistent reliability concerns with the layer 2 network.

K9 Finance Exits Amid Reliability Concerns

K9 Finance released a final update outlining its wind-down and transition plans following the dissolution of the K9 Foundation. In the announcement, K9 Finance’s development team claimed that Shibarium’s explorer and the network itself have struggled with reliability issues since a security incident that occurred in September 2025. The project stated that Shibarium remains problematic, citing these ongoing problems as a contributing factor to the decision to migrate KNINE, the project’s token, to Base blockchain. With the migration complete, all liquidity associated with the project has been moved to its new home on Base.

Mazrael Refutes Abandonment Claims

In response to concerns that Shibarium’s issues signal the network’s demise, Mazrael clarified that the layer 2 remains fully operational and far from abandoned. The community leader emphasized that active infrastructure continues supporting the network, including functioning validators and archive systems that maintain the blockchain’s integrity. Mazrael noted that Shibarium processes thousands of transactions daily, with ongoing development work and environmental migrations being executed as scheduled.

Importantly, Mazrael distinguished between individual project failures and broader network viability. While acknowledging K9 Finance’s right to choose a different blockchain for operations, the community leader stressed that one project’s departure does not indicate the network has been abandoned. According to Mazrael, multiple builders continue developing on Shibarium, with cross-chain interoperability lanes connecting to major blockchains remaining active and operational.

Current Network Status and Infrastructure Updates

The Shibarium blockchain explorer, ShibariumScan, is currently undergoing a reset process with 49% of blocks now indexed as the system completes its restoration. Daily transaction volume on Shibarium totaled 1,530 transactions, representing a decrease from 2,310 transactions recorded on August 20. An infrastructure migration took place on August 11, during which the explorer’s DNS routing was adjusted and routed through a Cloudflare proxy in a configuration change described as part of a technical infrastructure upgrade. The explorer has since been restored to operational status and continues serving the network.

The episode illustrates a critical distinction in evaluating layer 2 blockchain health: individual project exits reflect business decisions rather than network-wide failures. Shibarium’s ability to maintain active validators, process transactions, support cross-chain connectivity, and attract ongoing development suggests the underlying infrastructure remains viable despite the high-profile departure of K9 Finance. Layer 2 networks’ durability through project transitions will be crucial for crypto’s long-term scalability ambitions.

Source: K9 Finance, via U.Today. Not financial advice.

// DISCLAIMER: This article is for informational purposes only and is not financial, investment, or trading advice. Terminalcraft may earn a commission from affiliate links. Crypto is volatile and high-risk. Always do your own research.
JM

Jacob Marquez — Learn Desk

Jacob Marquez is the founder and editor of Terminalcraft, an independent XRP-first crypto news desk. An XRP holder and market watcher since 2016, he started Terminalcraft to deliver fast, factual crypto news without the hype.