Shiba Inu has announced the Layer 2 solution Shibarium. Shibarium aimed to legitimize SHIB and boost DeFi growth, but faced short-term skepticism.
According to an announcement on Jan. 16, Shiba Inu’s [SHIB] would soon launch their own Layer 2 solution called Shibarium. This move by Shiba Inu is important for the project, as it aims to delve into the layer 2 space and legitimize its cryptocurrency and protocol.
🍖 Introduction to Shibarium: Shiba Inu’s Layer 2 Network – Rejoice #ShibArmy! Shibarium Beta is about to be launched and through this article we want to introduce some basic concepts to bring clarity to the community.
Read more: https://t.co/xWyPaVlQQ4
— Shib (@Shibtoken) January 15, 2023
How much is 1,10,100 SHIB worth today?
Shiba Inu is joining the Layer 2 hype
One reason for the growing developments in the Shiba Inu ecosystem can be attributed to the fact that it is still viewed as a memecoin. However, with the launch of the layer 2 solution, Shiba Inu would try to move away from this perception and establish itself as a legitimate player in the cryptocurrency space.
Shibarium will run on top of Ethereum [ETH] blockchain, and will be used by the tokens SHIB, LEASH and BONE. According to the Shiba Inu team, Shibarium offers the benefits of scalability, faster transaction times, lower costs and a comprehensive development framework. In addition, the BONE token will be used for all gas costs for transactions on the layer 2 solution.
This development could also help Shiba Inu grow in the DeFi space. In the past month, ShibaSwap, Shiba Inu’s DeFi protocol, witnessed a growth in Total Value Locked (TVL) from $26.31 million to $31.19 million.
Source: DefiLlama
However, while Shiba Inu’s DeFi activity showed improvements, the SHIB token faced a number of challenges.
Nevertheless, the rate witnessed a huge spike suggesting an increase in the frequency with which SHIB was traded.
Source: Sentiment
Traders have a “BONE” to choose from
While the update on the Layer 2 solution could push up SHIB’s prices, traders were skeptical about the memecoin. According to data from Coinglass, a large number of positions against SHIB were short. This could possibly lead to increased selling pressure on SHIB in the short term.
Realistic or not, here is SHIB’s market cap in terms of BTC
However, in the long run, the launch of Shibarium may lead to more interest in the SHIB token and its ecosystem. At the time of writing, the price of SHIB was $0.00001043 after rising 4.67% in the past 24 hours.
This post Analysis of Shiba Inu legitimacy after the launch of Layer 2 solution
was published first on https://ambcrypto.com/analyzing-the-chances-of-shiba-inus-legitimacy-after-launching-layer-2-solution/
