- Shiba Inu price has held steady in the past few days.
- Focus shifts to the upcoming Shibarium launch.
- We explain how it will impact SHIB token prices.
Shiba Inu price has edged upwards in the past few days as investors wait for the upcoming important ecosystem news. Precisely, SHIB has crawled back because of the upcoming Shibarium launch. It rose from the year-to-date low of $0.000080 to a high of $0.000084. Like other tokens, Shiba Inu is stuck at over 90% below its all-time high.
What is the Shibarium launch?
Shiba Inu started off in 2021 as cryptocurrency prices surged. At the time, the token was launched to be a viable alternative to Dogecoin. As the token grew in popularity, the developers wanted it to have value.
As a result, they launched a series of additional features to boost the tokens utility value. One of these products was ShibaSwap, a DeFi protocol that has similar features like Uniswap. At its peak, ShibaSwap had a total value locked (TVL) of almost $1.8 billion. Today, it only has $23.7 million.
Shiba Inu’s developers also launched an NFT trading feature to take advantage of its popularity. Now, they are working hard to deliver their next big thing: Shibarium.
Shiba Inu, like many other tokens, was launched as an ERC token on Ethereum’s chain. As a result, users had to contend with rising fees and slow speeds in the network. Therefore, Shiba Inu’s developers decided to build a secondary chain on Ethereum.
There will be several benefits of transitioning to Shibarium. First, it will have lower transaction costs compared to what we have today. In fact, it is estimated that it will have almost zero charges. Second, Shibarium will enable faster transaction speeds and better performance.
Most importantly, it will make it possible for external developers to build on Shiba Inu. This means that developers in industries like DeFi and the metaverse will be able to build and use SHIB as their network token. Shibarium will be launched in Q1 of 2023.
How will Shibarium affect Shiba Inu price?
A common question is how the Shibarium launch will affect the SHIB price. In my view, I suspect that the impact will be relatively mild. It will also depend on the prevailing market conditions at the time.
In the past few months, we have seen many product launches not live to expectations. For example, recently, Chainlink price dropped even after the network introduced staking. Similarly, ETH price crashed after the recent launch of Ethereum merge.
Most recently, Theta Network and TFUEL prices plunged after the network introduced the metachain feature. Therefore, while Shiba Inu price will likely rise ahead of the launch, don’t expect these gains to be sustained.
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