Is Shibarium Centralized? Analysing Latest Narratives

The Shiba Inu ecosystem has long thrived on its founding principle of decentralization. But recent developments surrounding Shibarium, its Ethereum-based layer-two network, have sparked major controversy. 

The Shiba Inu core team, led by Ryoshi’s vision, has officially distanced itself from Shibarium, raising red flags about centralization risks and calling into question whether the network truly represents SHIB’s values.

Read Also: Shiba Inu Set for Explosive Revival

Key Takeaways

• The Shiba Inu team froze 4.6 million BONE tokens after a network attack, sparking concerns over centralization.
• Ryoshi’s vision of decentralization and fairness was cited as the reason for withdrawing support.
• Shibarium’s total value locked (TVL) has dropped to just $1.81 million in 2025.
• Competition from other memecoins continues to dilute Shiba Inu’s market share.
• Despite ecosystem controversy, SHIB price is consolidating in a symmetrical triangle, hinting at a potential breakout.

Why Shibarium Lost Support

The Shiba Inu team stated that Shibarium no longer aligns with its founding values of decentralization and fairness. The controversy arose after the Shibarium team froze 4.6 million BONE tokens in response to an attack. While the freeze helped protect user funds, it also revealed the extent of centralized control within the network.

In a public statement, the Shiba Inu team emphasized:

“We respect those using Shibarium, but we no longer endorse it because it doesn’t align fully with Ryoshi’s vision — which values decentralization, true utility, and fairness for all holders.”

This sentiment underscores the delicate balance between security interventions and decentralization, a recurring challenge in blockchain ecosystems.

The Market Impact

Shibarium’s troubles have already spilled into its financial metrics. According to DeFiLlama, its TVL has dropped to just $1.81 million year-to-date, reflecting declining confidence among users. Without endorsement from the Shiba Inu team, Shibarium faces an uphill battle for mainstream adoption, especially as new meme coin projects continue to gain traction.

The timing is also critical. With altseason hype building, Shibarium’s inability to attract new liquidity and sustain growth could cause it to fall further behind rival networks.

Is Shibarium Truly Centralized?

The freezing of tokens highlights one of the most controversial aspects of blockchain governance. On one hand, the decision protected investors from losses during an attack. On the other, it showed that Shibarium’s validators or developers hold significant power, undermining its claims of decentralization.

True decentralization requires that no single entity or small group can override consensus. Shibarium’s actions, though arguably well-intentioned, suggest that decision-making power is concentrated rather than distributed. For a project built under the Shiba Inu banner, this is seen as a fundamental contradiction.

Shiba Inu’s Future Without Shibarium

With Shiba Inu stepping back from Shibarium, questions arise about what lies ahead for SHIB’s ecosystem. Memecoin competition has grown fierce, with rivals launching new utilities and capturing market share. However, SHIB still benefits from one of the strongest communities in crypto, and its branding power remains unmatched.

Interestingly, SHIB’s price has consolidated into a symmetrical triangle on charts. Analysts believe this pattern could signal a breakout, though the direction will depend on broader market momentum. For holders, the immediate focus is on whether SHIB can continue to thrive independently of Shibarium.

Final Thoughts

The Shibarium saga illustrates the tension between maintaining decentralization and ensuring security in blockchain projects. While freezing tokens prevented losses, it also revealed centralization risks that clash with the ethos of Shiba Inu. By withdrawing support, the SHIB team is doubling down on Ryoshi’s vision of fairness and decentralization.

For investors, the message is clear. Shibarium may struggle to grow without Shiba Inu’s backing, while SHIB itself may look to redefine its ecosystem narrative. The coming months will be crucial to see if SHIB can maintain relevance as a standalone force in the memecoin space.

Read Also: Shiba Inu Price Prediction 2025

FAQ

Why did the Shiba Inu team stop supporting Shibarium?

They cited centralization risks after Shibarium froze 4.6 million BONE tokens, which they believe contradicts Ryoshi’s vision of decentralization and fairness.

Is Shibarium centralized?

While not fully centralized, Shibarium’s ability to freeze funds highlights that a small group has significant control, raising centralization concerns.

What happened to Shibarium’s TVL?

Its total value locked has dropped to around $1.81 million in 2025, reflecting reduced adoption and waning confidence.

Will SHIB be affected by Shibarium losing support?

Yes, it creates uncertainty, but SHIB still has a strong community and could rally independently, especially if market sentiment improves.

Is SHIB price bullish or bearish now?

SHIB is consolidating in a symmetrical triangle, a pattern that often precedes a breakout. The next move will depend on broader market momentum.