The cryptocurrency market is flooded with groundbreaking innovations, with each one offering a unique value proposition. These solutions focus on addressing the drawback of the legacy blockchain providing a seamless experience to its users. In light of this, the Shiba Inu ecosystem, known for its large and robust community, announced the launch of the Shibarium blockchain on Wednesday. Shibarium is a layer two solution built on the Ethereum network aiming to address the growing concerns of scalability. The network will utilize its primary token, SHIB for transaction fees.
Background of Shiba Inu
The Shiba Inu ecosystem is a hotspot for dog-inspired artists globally to foster the Shiba movement through its NFT market. Built on the Ethereum network, the ecosystem has three tokens of its own: SHIB, LEASH, and BONE. SHIB is the primary meme token with two important use cases being used to pay the transaction fees on the Ethereum network and is used for offering rewards to its users for providing liquidity. The LEASH token is staked to warm rewards and the holders of BONE are entitled to the right of governance. The network gained immense popularity after Vitalik Buterin, Co-founder of Ethereum burned around 90% of its token. The Shiba Inu ecosystem also has its own decentralized exchange, Shibaswap.
Ethereum Layer-2 Solution, Shibarium
The exponential growth of decentralized finance (DeFi) platforms and applications (DApps) has resulted in major congestion on the Ethereum network which has reduced its transaction speed and considerably increased the fees. Shibarium, the layer two solution on the Ethereum network, has become one amongst the many with the aim to address the challenge of scalability and provide a higher transaction rate with lower fees to its users.
The team claims Shibarium to be a part of the larger strategy aimed at establishing Shiba Inu as a notable blockchain project. The developers have planned to give its tokens way more utility through the Shibarium network as it utilizes all the tokens: SHIB, TREAT, LEASH, and BONE. Other than offering a low-cost option for decentralized applications (dApps), Shibarium focuses on targeting the metaverse and gaming applications, especially the NFT sector with the potential to experience a major surge in the coming years. With Shibarium backing the utility of tokens, the SHIB token garnered immense popularity lately, demonstrated by the creation of over 21 million wallets during their testing phase.
As the Defi community continues to evolve, blockchain projects like Shibarium play an important role in addressing the growing challenge of scalability and wider adoption. The launch of this layer-2 solution is a significant step for The Shiba Inu ecosystem and the crypto community at large enhancing the further growth of DeFi. Their promise to provide a low-cost transaction with enhanced speed has gained passive traction, especially in the metaverse and gaming community. The Shiba Inu ecosystem, with its decentralized exchange, Shibaswap, and the Ethereum layer-2 solution, Shibarium supporting and increasing the utility of its tokens has the potential to witness a massive surge in its demand and price in the coming days.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
