Shibarium remains the most anticipated project within the Shiba Inu community, but how will this upcoming addition to the ecosystem help SHIB’s price?
With the Shibarium mainnet launch just around the corner, the anticipation within the Shiba Inu community continues to build up. As investors await the upcoming addition to the Shiba Inu ecosystem, they wonder how the layer-2 network will help SHIB’s price action.
Shibarium’s Goal for Shiba Inu
It is essential to clarify that Shibarium’s primary objective is not to artificially inflate the price of Shiba Inu. Instead, the project aims to enhance the SHIB ecosystem by addressing key areas such as reducing fees, improving transaction speed, and introducing utility. These improvements are expected to drive the demand for Shiba Inu, ultimately leading to a potential increase in price.
Shibarium also seeks to address the issue of SHIB’s extensive circulating supply. The L2 network plans to burn SHIB tokens, utilizing up to 70% of base fees from each transaction. By reducing the supply of SHIB and potentially increasing demand, these efforts can contribute to a price increase.
Last year, Finder surveyed 55 industry leaders in the FinTech sector to gather insights on how Shibarium could impact SHIB’s price. 50% of these experts expressed uncertainty, while 25% believed that Shibarium would positively affect Shiba Inu’s price.
Only 3% of the specialists asserted that the network would have a negative impact, with the remaining 22% stating that it would have no effect.
Shibarium’s Impact Depends on Adoption
The impact of Shibarium largely depends on the rate of adoption it achieves. While its primary goal is to enhance the Shiba Inu ecosystem and attract utility, the long-term effects on SHIB’s price will depend on how many investors and builders embrace Shibarium. Increased adoption will lead to more transactions processed on the network, resulting in greater utility and potential price support for SHIB.
The future of Shibarium looks promising based on the impressive adoption rate of its beta testnet, Puppynet. A recent report from The Crypto Basic revealed that Puppynet had surpassed 20 million transactions. The testnet achieved this milestone less than three months after its redeployment.
As of now, Puppynet has processed over 21.18 million transactions, with over 16.85 million wallets and 1.267 million blocks recorded, according to data from Puppyscan. The adoption rate of Puppynet provides a glimpse into how well Shibarium will capture the crypto community’s attention.
However, it is crucial to note that these projections are speculative, as the actual adoption of Shibarium may differ from expectations. As the community eagerly awaits its release, Lucie, a Shiba Inu marketing team member, predicted a possible launch date between Q2 and Q3 2024. However, she noted that this was not certain.
Although Shibarium is likely to support Shiba Inu’s price action, the extent of this support remains to be seen. SHIB could have a chance at reclaiming its all-time high value if Shibarium commands an impressive adoption rate during the next bull market. Meanwhile, SHIB is currently trading for $0.00000679, up 0.59% in the past 24 hours.