Shibarium is a layer 2 solution that aims to increase transaction speed and lower costs in the Shiba Inu ecosystem. The low scalability of the Ethereum network and costly gas fees have prevented the Shiboshi NFT Project, the Shib Metaverse, DEX features, and Shiba Inu games from reaching their full potential.
Shibarium looks to address these high costs by offloading some of the transaction data to a dedicated Layer 2 infrastructure while retaining a direct connection to the Ethereum network. Not only that, Shibarium transactions are expected to burn SHIB, which could put significant deflationary pressure on the Shiba Inu coin and massively increase its value.
Shibarium beta, referred to as “Puppynet”, launched on March 11. According to a Shiba Inu content marketing specialist LucieSHIB, we might see the mainnet launch of Shibarium in the second half of 2023.
In this article, we’ll examine Shibarium, explain its layer 2 inner workings, outline the release date, and explore how the price of SHIB could be impacted.
What is Shibarium?
Shibarium is a blockchain layer-2 solution first proposed by the anonymous Shiba Inu creator Ryoshi in May 2021 in a now-deleted blog post.
It is a framework that will be built on the Ethereum blockchain, which allows it to benefit from the network’s underlying security and infrastructure. But as an L2 solution, it would be faster and offer lower transaction fees than what is currently obtainable on Ethereum.
The launch of Shibarium is one of the main reasons why Shiba Inu could be the next cryptocurrency to explode in 2023.
How does Shibarium work?
Shibarium will be a secondary blockchain network built on Ethereum. It will handle most of the transactions involving SHIB and other ecosystem tokens, thereby reducing the network transactions on Ethereum. Its continued connection to Ethereum means that SHIB holders will be able to continue participating in Ethereum’s massive DeFi ecosystem.
Shibarium will allow Shiba Inu (SHIB) holders to burn their tokens, which would effectively remove a significant portion of tokens from circulation. SHIB burning could boost the price of Shiba Inu coins and help the token grow through deflationary tokenomics. However, there is little indication that the rate of burning will increase sufficiently for the price of Shiba Inu to reach $1, as some investors believe.
Sparing technical details, layer 2 solutions leverage the robust infrastructure of their underlying layer 1 blockchains to ensure security, but use techniques like rollups or transaction channels to give users access to faster and cheaper transactions.
Benefits of Shibarium: L2 network that could unlock the full potential of Shiba Inu
There are several advantages to launching Shibarium. In the sections below, we will explain why it is the most anticipated project in the Shiba Inu ecosystem. These benefits include:
Lower transaction fees
When Ryoshi first proposed the idea of Shibarium, the pseudonymous creator mentioned that it would have minimal or even zero fees. The project lead for Shiba Inu, Shytoshi Kusama, has since clarified that Shibarium will ensure lower fees for every project that builds on it. This is crucial given that high fees remain one of the major problems on Ethereum, and it is where scaling solutions have been able to shine.
SHIB burn mechanism
Shiba Inu burn rate increase could significantly boost the value of SHIB tokens. Source
Shibarium is also expected to have some SHIB burn mechanisms. This is crucial, especially if the SHIB value is to increase. With a current supply of over 500 trillion tokens. The large supply has been one of the factors that have prevented its value from increasing. Although there have been SHIB burns, they’re mostly voluntary, so the burn rate is very slow. Only 40% of the token supply has been burnt so far. With Shibarium, there will be more activities involving SHIB, which means more gas fees and more tokens to burn.
Faster transactions
All scaling solutions on Ethereum promise faster transaction speeds, and Shibarium is no different. During peak activity periods, transactions on Ethereum could take a while due to network congestion. Ethereum processes about 30 transactions per second. Most Layer-2 networks can process over a thousand within the same period. This means lesser network congestion.
Better performance
One of the goals of Shibarium is to improve performance for all decentralized applications (dApps) built on it. Faster transactions and lower fees will ensure high throughput. This will be good for Shiba games and other decentralized applications. For example, the developers launched the Shiba Eternity game in October. Although the game is currently a mobile game, there are plans to have it available on-chain and playable on Shibarium.
DApp development for the Shiba Inu ecosystem
The community also hopes to encourage the development of decentralized applications on Shibarium, which will further boost the utility of SHIB and other tokens. Once there is a Layer-2 solution, those who want to develop within the Shiba Inu ecosystem can do so.
Metaverse
Shiba Inu recently launched its metaverse project with Shiba Inu: the Metaverse. Many believe that Shibarium will play a crucial role in implementing the Shiba Inu metaverse and ensure more efficiency for the metaverse applications.
All in all, the broad development roadmap undertaken by the Shiba Inu developers will certainly be hard to realize. However, given the strong support of the community and clear monetization incentives outlined with Shibarium, Shiba Inu deserves a spot among the best cryptocurrencies to buy in 2023.
What is the Shibarium coin? Shiba Inu L2’s utility token
Bone ShibaSwap (BONE) will be the native Shibarium coin. Ryoshi chose it with the belief that it would give everyone a fair start, unlike SHIB, which already has several whales. However, several users of ShibaSwap DEX had already minted BONE before the community decided to end its minting. There are 230,000,000 BONE tokens in circulation presently, meaning there are likely several whales too. When Shibarium becomes active, validators on the network will get BONE for securing and validating transactions on the L2 network.
In addition, every Shibarium transaction will consume SHIB, which means that the massively inflated circulating supply of SHIB (currently standing at roughly 550 trillion) is expected to decrease drastically after the launch of the layer 2 product. This could contribute to making SHIB a good investment moving forward.
What is the Shibarium release date? Latest Shibarium news
In a recent tweet, a Shiba Inu marketing specialist LucieSHIB wrote that the mainnnet launch of Shibarium could occur in the second half of 2023. LucieSHIB has previously predicted that the Shibarium beta would launch in Q1 2023, which ended up being a correct prediction as the beta launched on March 11, 2023.
LucieSHIB noted that the reason for the slow development of the full Shibarium release is the Shiba Inu’s team commitment to rigorous safety tests and audits. “As we move through beta testing, it all depends on progress and audits,” LucieSHIB stated.
I see the question of WHEN #Shibarium will be released.
As we move through beta testing, it all depends on progress and audits. Shytoshi informed me that there will be audits.
In addition, it is extremely important not to underestimate SAFETY.
Crush-Tests are extremely… pic.twitter.com/2NmyqaPV0R— ????? (@LucieSHIB) May 4, 2023
It is worth noting that there have been numerous predictions in regard to the Shibarum launch date in recent months. However, the leading Shiba Inu developer Shytoshi Kusama has made no concrete announcement regarding the exact timeline for the launch of Shibarium. “Soon frens. Until then, be well,” is all that Shytoshy said on the matter of the Shibarium release data in a blog post published in late February.
How will the launch of Shibarium impact the price of SHIB?
See up-to-date Shiba Inu price prediction
Our automatic prediction algorithm forecasts major SHIB price fluctuations over the next 12 months.
Shibarium will establish the foundation for the development of the Shiba ecosystem. When it is launched, all other Shiba Inu products, such as the decentralized exchange, metaverse, games, and NFTs, would operate from there.
Even though SHIB won’t be the utility token, it will still be an integral part of the ecosystem and will likely see its value rise after the launch. While many might still see it as a memecoin, Shibarium can help SHIB show that it is more than just the regular pump-and-dump scheme, like most meme coins, adding to its utility. If you want to learn more, give our overview of the main arguments for and against Shiba Inu’s price going up a read.
According to our Shiba Inu price prediction, the price of SHIB is expected to undergo some massive swings in the next year, culminating in an all-time high of $0.000264 in June 2024. Keep in mind that this prediction is based on a snapshot of technical indicators in early May 2023, and could change considerably over time.
In any case, the launch of Shibarium is one of the main reasons why the price of SHIB could reach 1 cent, 50 cents, or even $1 in the long term, and help Shiba Inu establish itself as one of the leading blockchain projects.