Developers behind the world’s second-largest meme crypto token, Shiba Inu (SHIB), indicated in a blog post earlier this week that they would soon be launching a beta version of the long-awaited Shibarium blockchain. Shiba Inu currently lives as an ERC-20 token on the Ethereum blockchain, but developers have long promised that they would build a layer 2 Ethereum scaling solution to reduce gas fees and increase the Shiba Inu token’s utility.
Shibarium to Pump SHIB’s Price?
In the blog post, Shiba Inu developers didn’t give an exact date as to when the beta version of Shibarium will be released, beyond saying “soon”. Despite the blog saying that SHIB “price pumping” is not the project’s focus, many analysts think that the launch of Shibarium will have that exact effect.
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 in order to provide clarity to the community.
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— Shibarium Network (@ShibariumNet) January 15, 2023
That’s because, as Shiba Inu developers state in their latest blog, Shibarium helps fulfill founder Ryoshi’s vision and “provide the community with a tool to build and grow the project on their own terms”. More specifically, Shibarium will facilitate the expansion of the Shiba Inu web3 ecosystem, adding utility to the SHIB token which is for the most part currently owned as a collector’s item or for speculation.
The announcement that Shibarium’s launch is near comes after a few other positive announcements. These include that, while BONE will be used as the gas token on the Shibarium layer 2 blockchain, SHIB will also be burned with each transaction. Meanwhile, it was recently also announced that the Shiba Inu metaverse is also expected to launch in 2023.
Where Next for SHIB?
SHIB has been rallying in tandem with the broader cryptocurrency market since the start of 2023 and recently reclaimed the $0.000010 per token level, where it now trades up some 32.7% on the month. However, the cryptocurrency has this far been unable to break sustainably above its 200-Day Moving Average, which has acted as resistance since early/mid-2022.
Should the broader cryptocurrency market rally continue and should SHIB muster a sustained push to the north of the its 200DMA at $0.00001070, then the dog-inspired meme coin stands a solid chance of being able to rally back to its late-October highs in the $0.000015 area.