SHIB and Dogecoin Underperform After Shibarium Hack Leads to $2.4M Loss

Memecoins came under pressure after Shiba Inu’s layer-2 network, Shibarium, was hit by a $2.4 million flash loan attack, highlighting ongoing security risks in the sector.

The attacker used 4.6 million BONE tokens—the Shiba Inu ecosystem’s governance token—to gain temporary control of validator keys, enabling unauthorized transactions and draining assets from the bridge connecting Shibarium to Ethereum. Staking rules locked the tokens used, preventing a larger breach.

SHIB fell 4% to $0.00001369 and later traded at $0.00001359, while BONE, which initially spiked past $0.36, cooled to around $0.20. Technical analysis shows SHIB consolidating between $0.000013600 and $0.000013780, with potential resistance near $0.000014000.

Dogecoin (DOGE) also declined, dropping 4% to $0.2780 and further to $0.2736, as a 119.3 million DOGE ($34M+) transfer to OKX suggested possible liquidation.

The hack underscores the persistent vulnerabilities of memecoins and the risks inherent in high-volatility crypto assets.