With the imminent launch of the Shibarium mainnet, excitement within the Shiba Inu community is reaching new heights. Shibarium, a layer 2 network, is expected to impact the SHIB price. However, the magnitude of its effect is still under speculation.
What Does Shibarium Hope to Achieve?
Shibarium is Shiba Inu’s upcoming layer-2 solution built on the Ethereum blockchain. Its primary aim is to transform Shiba Inu from a meme coin into a complete ecosystem by addressing key areas including fees, transaction speed, and utility.
Based on experts’ analysis, improvements in these areas are expected to drive the demand and consequently result in a potential increase in the price of the digital token SHIB in the long term.
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Another key challenge the Shiba Inu token faces is its excessive circulating supply, which has contributed to its price instability and stunted growth. Shibarium also seeks to address this issue by initiating an effective SHIB burn mechanism.
It promises to burn SHIB tokens, utilizing up to 70% of base fees from each transaction. It is expected that by reducing the supply of SHIB and potentially increasing demand, Shiba Inu will take an upward trend in terms of price.
It is essential therefore to note that Shibarium’s impact on Shiba Inu’s price is only a consequence of its effect on these key areas.
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Shibarium Adoption: Determinant of Positive Impact on SHIB
Launching Shibarium on the mainnet will no doubt have a positive impact on the price of SHIB. However, it is worth considering that the extent of this impact largely depends on the number of investors and builders on the network.
Notably, increased adoption will result in more transactions on the network which would lead to greater utility, while decreased adoption will do the exact opposite.
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