Why did Shiba Inu’s price jump up today? most probally because Shiba Inu (SHIB-USD) tokens gained as much as 20.1% earlier in Wednesday’s session, extending its year-to-date rally, as traders weigh the beta release of the upcoming ethereum (ETH-USD)-based layer 2 network Shibarium.More over the metaverse-focused network would ultimately allow blockchain developers to create decentralized applications (dApps) while aiming for increased speed, scalability and lower transaction expenses.
The Shiba Inu community has been buzzing with excitement at the news of Shibarium’s launch. And now, a new update on the layer-2 network has just dropped, convincing investors that SHIB’s price is about to explode to $0.001.
On Sunday, Jan 15 the team behind Shibarium published a blog, giving the community a first look at the s. As per shibarium protocol the blog, developers behind the much-anticipated protocol were “approaching the finishing touches for Shibarium’s Beta and its imminent launch.”
Addressing the incessant question of “wen” the launch will happen, the team, however, asked the SHIB army to be patient, stating that the phased release was not a matter of when but a matter of developing Shibarium correctly and introducing it responsibly.
“Avoid asking wen, because the answer will always be a ‘soon’,” they said.
In a tweet earlier, anonymous Shiba Inu developer Shytoshi Kusama likened Shibarium to a pine tree which would revamp the Shiba Inu ecosystem and give developers and the Shib community a wide range of functionalities.
Shibarium was first proposed in May 2022 by Ryoshi, the anonymous creator of the Shiba Inu (SHIB) token in May 2021 after launching SHIB in 2020 and establishing a huge and loyal community in the form of ShibArmy.
Shibarium’s goal has been to transform and improve the investor experience in the Shiba ecosystem by providing increased transaction speeds, lowering costs, allowing projects to scale and introducing bridges for other blockchains. In short,shibarium will propel the Shiba Inu ecosystem towards achieving its full potential, which has been hampered by Ethereum’s low scalability and high gas fees.
Notably, Shibarium will also introduce new SHIB burning mechanisms to help reduce the token’s high supply. As previously reported, BONE will act as the native token selected to pay for gas transactions and reward validators within the Shibarium protocol. Furthermore, for every transaction conducted using BONE, SHIB tokens will be destroyed effectively reducing the circulating supply of the token over time.
Meanwhile, although the market has reacted favourably to Sunday’s announcement, the upcoming launch has stoked investors who believe that Shibarium will revolutionize the ecosystem in the greatest way possible. Some also see Shibarium as a price-pumping tool that could propel SHIB’s price to even $$0.001. The so-called “DOGE killer” grew by over 30% in the past week, effectively tapping a fresh high. At press time, SHIB was trading at $0.0000112 after growing by 5.81% in the past 24 hours.
Why Shiba Inu ?
Shiba Inu was launched as a joke and essentially a spinoff of Dogecoin, utilizing Dogecoin’s mascot, the Shiba Inu canine, to generate buzz. The plan has by and large worked well, with Shiba Inu rising to a nearly $7.3 billion market cap.
But as an ERC-20 token running on Ethereum’s network, Shiba Inu didn’t really have much to offer from a unique technical or utility perspective. That could be about to change with the upcoming launch of Shibarium, which is a Layer 2 protocol that will essentially sit on top of Ethereum and act more like Shiba Inu’s own network.
The Shibarium network will be able to ease congestion from Ethereum and make transactions on the network potentially faster and cheaper. Shibarium is expected to support Shiba Inu and will also be used for the metaverse, non-fungible tokens (NFTs), and other gaming functions.
Additionally, Shibarium will have a burning mechanism that will help reduce Shiba Inu’s massive supply and potentially set up a better supply-and-demand dynamic for the token.
“Patience is key, and some see Shibarium as a price-pumping tool, but that is not the project’s focus and never has been,” the Shiba Inu developers wrote in a recent blog post. “Shibarium is being built to fulfill Ryoshi’s vision and provide the community with a tool to build and grow the project on their own terms.”
Now What Will Happen in Price of Shiba inu and Bitcoin ?
With the price of Bitcoin only up slightly over the last 24 hours and many cryptos in the red today, it is clear that excitement over Shibarium is driving Shiba Inu’s rise this morning.
I’ve never been interested in Shiba Inu before because I didn’t see anything unique about the cryptocurrency other than its ability to generate buzz and go viral. However, this Shibarium development is certainly intriguing.
I think it’s too early to tell if this will truly be a game changer, but I will be watching this development with more of an open mind.
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