The crypto world is buzzing with talks of Shibarium, a layer 2 solution built specifically for the Shiba Inu ($SHIB) coin. But why is everyone so excited about it? Well, it might be the secret weapon in the $SHIB arsenal to drive its price to $0.01. Yes, you read that right! Amidst the volatility of BTC price, a journey to the moon for $SHIB might not be as farfetched as it seems.
Want to know how? Buckle up, as we delve into the ins and outs of Shibarium and its potential impact on $SHIB’s price trajectory.
What is Shibarium?
Shibarium is a Layer 2 Ethereum scaling solution developed to optimize the transaction capabilities of the Shiba Inu coin. As a layer 2 platform, it functions alongside the Ethereum main blockchain, enhancing its performance by executing transactions off-chain.
This not only accelerates transactions but also significantly reduces the transaction fees associated with $SHIB transfers. These enhancements are expected to boost the utility and scalability of $SHIB, positioning it for potential price appreciation. Notably, Shibarium’s development comes amidst fluctuating BTC prices, showing $SHIB’s independent growth potential.
Shibarium Adoption is Rising
The platform has recently surpassed two million transactions and continues to set new daily records, the highest being over 200,000 transactions daily. Additionally, the total number of wallet addresses connected to Shibarium has grown significantly, with a current total of over 1.2 million.
The Bone ShibaSwap (BONE) token, which is essential for conducting transactions on Shibarium, is also seeing increased interest. Notably, the number of addresses holding substantial amounts of BONE has surged by 50% in the last month. Furthermore, BONE and another Shibarium token, LEASH, were recently added to the Australian crypto exchange GroveX, enhancing their accessibility.
However, users are warned to avoid scams involving the yet-to-be-released TREAT token. As the Shiba Inu team, led by Shytoshi Kusama, works on updates, they remind users that TREAT has not been officially launched. They advise everyone in the SHIB community to stay alert and avoid falling for fraudulent offers.
Shibarium is the brainchild of Ryoshi, the catalyst behind the inception of Shiba Inu. Ryoshi postulated that the cornerstone to achieving absolute decentralization lies in a community owning a cost-effective blockchain solution. Hence, Shibarium was brought into play, earmarked as one of the pivotal objectives of the Shiba Inu project. The core idea behind it was to curtail transaction costs for those affiliated with the Shiba ecosystem. Ryoshi suggested that transaction charges on Shibarium would be nominal, if not non-existent. Shytoshi Kusama, the project lead of Shiba, elaborated, “Shibarium aims to provide cost-effective services for every game, application, or service built on it.” The objective is to process transactions in “seconds for less than pennies.”.
How Shibarium Could Impact $SHIB’s Price?
Shibarium’s improvements to transaction speeds and costs could attract a broader user base to $SHIB, potentially driving up demand and, by extension, its price. Moreover, with reduced transaction fees, $SHIB becomes a more viable option for small transactions, an area where the high cost of Ethereum gas fees has previously been a barrier.
This can bring about an increase in daily usage and liquidity of $SHIB, both of which are positive price indicators. Lastly, Shibarium’s development demonstrates a commitment to ongoing innovation within the Shiba Inu project. Regardless of the BTC price trends, this kind of forward-thinking development can foster investor confidence and contribute to upward price movement. However, it’s crucial to note that the crypto market’s volatility demands careful analysis and risk management strategies from its participants.
SHIB Price Analysis
SHIB continues to trend below the 50 and 200-day moving averages despite the launch and success of the Shibarium net. In fact, the market capitalization of the meme-inspired cryptocurrency at the center of the ecosystem has dropped from $6.15 billion to $4.2 billion in 30 days. Moving forward, if the market remains unfavorable, the price of SHIB may drop further. On the majority of CEXs, SHIB has completely wiped away all the profit made since about one year ago.
If there was ever a great moment to invest in SHIB, it would be now as the asset is 92% down from its all-time high price. If you buy now, you could easily score a 10X RoI when the asset revisits its all-time high. Rumors of flash crashes in the future of crypto trading abound, and hence setting several low buy limit orders on select exchanges might be a wise idea.
The Shiba Inu project, despite current market trends, shows signs of potential growth due to ongoing development efforts like Shibarium. While the price of SHIB is significantly lower than its all-time high, it could represent a good investment opportunity, provided the market conditions improve. However, it’s essential to keep in mind that the volatile nature of cryptomarkets, including fluctuations in BTC price, mandates careful risk assessment and strategic planning. As always, investors should conduct their research and consider their financial circumstances before making any investment decisions.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.