Developers announce the launch of Shibarium

The Shiba Inu (SHIB) price has stabilized in recent days after falling 6.88% in one week. The negative trend reversed after the development team announced the launch of Shibarium, a major upgrade to the Shiba ecosystem.

SHIB is currently trading at $0.00000833, not far from the year-to-date low of $0.000080. Like other cryptocurrencies, Shiba Inu is suffering from unfavorable macroeconomic conditions which are currently pushing prices lower.

What is the shibarium?

Shiba Inu was created in 2021 when the crypto industry was booming and prices were skyrocketing. It was primarily a competitor to the popular Dogecoin token. But as Shiba grew in popularity, the development team began researching use cases for the part.

They introduced a number of additional features to increase the usefulness of the token. This is how ShibaSwap was born, a DeFi protocol with features similar to Uniswap. At its peak, ShibaSwap had a total locked value of almost $1.8 billion. Today it is only $23.7 million.

The Shiba Inu developers have also unveiled their own NFT series to capitalize on the piece’s popularity. They are now working on the development of their next big project: Shibarium.

Shiba Inu, like many other cryptocurrencies, was launched as an ERC20 token on the Ethereum blockchain. As a result, users have to deal with rising charges and slow network speeds. Therefore, the Shiba Inu developers decided to create their own Layer 2 solution.

Switching to the Shibarium will have several advantages. First, transaction costs should be significantly lower than they are today. It is estimated that there will be almost no costs. Second, Shibarium will enable faster transactions and better performance.

More importantly, external developers also have the possibility to create decentralized applications on Shiba Inu, for example their own DeFi platforms or Metaverse projects. SHIB would serve as a network token for these projects. Shibarium is expected to launch in the first quarter of 2023.

How will the Shibarium affect the price of the Shiba Inu?

The question for many Shiba investors right now is how the launch of Shibarium will affect the SHIB price. I suspect the impact will be relatively small. The price will continue to depend primarily on market conditions.

Over the past few months, we’ve seen many product launches fall short of expectations. For example, Chainlink’s price dropped soon after it became possible to stake LINK tokens on the network. Likewise, the long-awaited upgrade to Ethereum 2.0 did not lead to a significant change for the price of ETH. More recently, Theta Network and TFUEL prices dropped following the unveiling of the metachannel feature on the network.

There is a high probability that the price of the Shiba Inu will briefly increase just before the launch of the Shibarium, but not much more should be expected.

Leave a Comment