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- Shibarium is set to go live as a layer-2 protocol powering the positive outlook of Shiba Inu.
- The launch will help burn SHIB but would it drive price to $1?
The Shiba Inu (SHIB) ecosystem is growing by a deep stretch but the major conversation about the memecoin is now hinged on the emergence of the Shibarium protocol. Shibarium is dubbed as the ecosystem’s Layer-2 protocol that will help drive the more scalable transactions on the Ethereum network.
By its design, Shibarium is meant to make the entire Ethereum protocol more usable, pushing direct competition with such protocols as Optimism, Polygon, and other L2s. The advanced capabilities of Shibarium are based on what the developer team behind it has said, as insights into its actual workability are yet unknown.
Nonetheless, the hype surrounding the launch of the protocol is high at this time and there is growing speculation that its emergence will impact the price of SHIB in a unique way.
The Shibarium and SHIB Dynamics
In contrast to Shiba Inu is a token built on Ethereum, Shibarium will have its own native token which is already operational in the ecosystem. This potential native token is called Bone ShibaSwap (BONE) and it will be used for paying the gas fees for all transactions that are carried on Shibarium.
BONE is not designed as a memecoin like SHIB, however, whenever a transaction is carried out, it a portion of Shiba Inu is burned, gradually pushing the memecoin’s deflationary agenda. According to the official handle of BoneShibaSwap, this burn mechanism from Shibarium and BONE is the only guaranteed way for SHIB to reach $1.
#ShibArmy #BoneArmy #Shiba #Gas
The important question is, what if everyone knows that the way #Shib can reach 1 $ is maximum support of $bone and #shibarium? Because #Shibarium layer2 blockchain burns $Shib in every transaction and #bone is the cause of all these works! . . .— Bone ShibaSwap (@BoneShiba) February 12, 2023
It is worth noting that memecoins like Shiba Inu and its major competitor Dogecoin (DOGE) have a very large supply and extremely lower prices. With Shiba Inu’s circulating supply currently pegged at 549,063,278,876,302 SHIB, there is a huge need to reduce this amount if there is a likelihood that its current price of $0.00001236 will touch $1.
SHIB has gone a long way since its inception, getting to this current price level from an all-time low of $0.000000000082. The current price level represents a total of 15158800.66% from that lowest point, a percentage that even the biggest company’s stocks have not recorded in the history of the stock market.
Early adopters of SHIB are already in the money, but the question now remains, would we all, drawing on the token burn move become millionaires in the near future?
An Honest Assessment
Even though Shibarium will be burning SHIB with every transaction, there is a limited chance that it will influence the token’s price in the long term.
Nonetheless, it is more important to note that Shibarium can drive new companies to the ecosystem and drive value with this into the SHIB ecosystem. If more people and companies drive the price up, SHIB can certainly reach $0.01 or even a little bit more, but probably never $1.
Considering its current supply, the total market cap will touch multiple trillions of dollars, a figure that is already too ambitious.
