According to the yearly reports for the last year, Shiba Inu surpassed even Bitcoin in terms of popularity thanks to a 45,000% growth during mid-the last year. The meme-coin tag, however, led to investors undermining the utility model and practical applications of the coin in the future. The project announced several new additions to the ecosystem to be introduced in 2022.
Shiba Inu was developed by an anonymous person or a crew known as Ryoshi and launched in the last year. After just three months, Shiba Inu investors went home with millions earned from pocket change. However, the coin soon met with a down-current that lasted for several months keeping the coin well below 1 cent. The model of the meme-coin itself was hindering its rally to 1 cent with a definite supply of 1 quadrillion tokens. Nearly half of the circulation has been burnt out of circulation to get the demand for SHIB by Ethereum’s CEO Vitalik Buterin and its community members.
The Shiba Inu team, on the other hand, is trying other methods to keep the tokens relevant in the market. Shiba Inu recently released innovative projects like SHIB DAO, Shibverse, ShibaSwap, etc. The successful implementation of these projects is reliant on Shiba Inu’s layer-2 solution. Click on the linked article to check out how the price of the SHIB token might perform in the face of such developments from Shiba Inu.
Shiba Inu’s native token SHIB was designed based on the ERC-20 protocol making it compatible with Ethereum-based projects. The downside to this is that SHIB coins’ transaction fees and speed directly reflect that of Ethereum’s. As already known, several projects have moved away from Ethereum owing to the above-mentioned issues. Now, Shiba Inu will make its move out of the blockchain by creating its own layer-2 solution, Shibarium.
Shibarium’s layer-2 infrastructure will be built on the existing Ethereum blockchain. The new project, however, will have autonomy when it comes to processing the transactions and scalability. Rollups, which are solutions that perform transaction execution outside the main Ethereum chain (layer 1) but post transaction data on layer 1, are reported to enhance the operations of this new layer-2 solution from Shiba Inu. Another formative change is that this new ecosystem would use BONE tokens in place of SHIB or LEASH. BONE would initially be offered at $0.0, and yields can be received from ShibaSwap.
What makes this project integral for the future of Shiba Inu? Shiba Inu has seen rapid growth with merchants and other mainstream applications. Recently, AMC entertainment and Newegg included SHIB in their list of accepted cryptocurrencies. Moreover, popular payment gateways like NowPayments and BitPay allowed SHIB payments to authorized merchants. In order to sustain and grow this market, SHIB needs to address the issues related to its speed and cost as soon as possible. It is for this reason the SHIB community is eagerly expecting the arrival of Shibarium L2.
Apart from addressing fundamental issues like cost, scale, and speed, Shibarium will make ambitious projects such as ShibaNet and Shibverse possible. ShibaNet is a marketplace for decentralized products from the Shiba Inu ecosystem for which the scaling and cost reduction abilities of Shibarium would prove effective. This project would be using a separate token known by the ticker symbol SHI which would carry an initial value of $0.01.