Shibarium, a Layer 2 solution developed by the Shiba Inu community, is emerging as a powerful tool to improve transaction speed and reduce fees on the Ethereum network. With its advanced features, Shibarium not only benefits users but also unlocks significant growth potential for blockchain projects.
1. What is a Shibarium?
Shibarium is a Layer 2 solution developed to optimize performance for the Shiba Inu ecosystem. The main goal of Shibarium is to increase transaction processing speed and reduce costs during usage, while also promoting the sustainable development and decentralization of the network. The idea of Shibarium was first proposed by Ryoshi, the anonymous founder of Shiba Inu (SHIB), as a solution to reduce reliance on the Ethereum network, which has high transaction fees and slow processing times.
2. How does Shibarium work?
Shibarium operates by aggregating multiple transactions and processing them off-chain from Ethereum. This helps to reduce the load on the Ethereum network, thereby enhancing transaction speed and significantly lowering fees. Instead of processing each transaction directly on the Ethereum chain, Shibarium allows them to be handled on a separate layer, off the main chain.
Once the transactions are processed, they are sent back to the Ethereum chain to be finalized and verified, ensuring that security and verifiability are maintained. A unique feature of Shibarium is the “burning” of SHIB tokens with each transaction. When transactions are carried out, a certain amount of SHIB is destroyed, reducing the total number of Shiba Inu tokens in circulation.
This creates a deflationary mechanism, making Shiba Inu tokens increasingly scarce, which could indirectly impact their value. While deflation may contribute to increasing the value of Shiba Inu in the future, reaching a price of 1 USD or experiencing a significant value surge in a short period remains a major challenge.
3. Benefits of Shibarium
3.1. Lower transaction fees
When Ryoshi, the anonymous creator of Shiba Inu, first proposed Shibarium, he emphasized that this ecosystem would have extremely low transaction fees, potentially even being free. Shytoshi Kusama, the lead of the Shiba Inu project, has confirmed that Shibarium will maintain low fees for all projects developed on this platform. This is particularly important as Ethereum still faces high transaction fees, and scalability solutions like Shibarium will address this issue, benefiting both users and developers.
3.2. Faster transactions
One of the key advantages of Shibarium is its ability to process transactions quickly. Ethereum, at times of high traffic, can experience network congestion, slowing down transaction speeds. Ethereum can currently handle about 30 transactions per second, while Layer 2 networks like Shibarium can process thousands of transactions in the same time frame. This helps reduce congestion and enhances the scalability of the network, providing a smooth and fast experience for users.
3.3. Better performance
Shibarium not only helps reduce fees and accelerate transactions, but also enhances the performance of decentralized applications (dApps) built on its platform. This performance improvement will facilitate the development of applications and games, such as the Shiba Eternity game released in October. While the game is currently a mobile application, plans to bring it on-chain and enable direct play on Shibarium will open up significant opportunities for the growth of decentralized applications and blockchain games in the future.
4. What is the Shibarium token?
Bone ShibaSwap (BONE) is the native token of the Shibarium network. Chosen by Ryoshi as the main token, BONE offers a fair opportunity for the community to participate in the Shiba Inu ecosystem, in contrast to SHIB – the coin that is primarily owned by a few whales. The idea behind selecting BONE was to create a more equitable distribution method, allowing everyone to have a chance to own the token from the early stages, thus avoiding the concentration of power in the hands of a few individuals.
However, before the decision was made to halt the minting of BONE tokens, some users had already minted a large quantity of these tokens. Currently, a total of 229,920,000 BONE tokens are in circulation, indicating the presence of some whales, although the number is not as significant as with SHIB.
5. How will Shibarium impact the price of SHIB?
Although SHIB is not the gas token on Shibarium, it still plays an indispensable role in the project’s ecosystem. Once Shibarium becomes operational, it is likely that SHIB will experience an increase in value due to the growth and utility that Shibarium brings.
While SHIB is still considered by many as a memecoin, its integration into Shibarium will help prove that this token is not just a short-term speculative tool like many other meme coins. In fact, Shibarium not only offers fast and low-cost transactions but also creates additional real-world use cases for SHIB, thereby enhancing its value and stability in the long term.
6. Shiba Inu price prediction 2023-2025
Based on technical indicators and current trend analysis, the price of SHIB is expected to experience significant fluctuations in the coming years, particularly between 2023 and 2025. One prominent forecast suggests that SHIB could reach an all-time high of $0.000119 USD by June 2025.
However, it is important to note that this prediction is purely speculative, as the factors affecting the cryptocurrency market are highly complex and can change at any time. With the launch of Shibarium, many expect SHIB to potentially reach target prices such as 1 cent, 50 cents, or even 1 dollar in the long term.
With its ability to process transactions quickly, low fees, and superior performance, Shibarium is becoming an attractive option for developers and users alike. Its development could provide a significant boost to the Shiba Inu ecosystem and decentralized applications in the future.
