Shiba Inu’s Moon Mission: Can Shibarium Rocket SHIB to the Next Level?

Carson O.
15 Min Read
Shiba InuCourtesy - freepik.com

Shiba Inu coin (SHIB) made headlines in 2022 when the project’s developers announced the launch of Shibarium, a new Layer 2 solution designed to dramatically improve transaction speeds and reduce fees on the Shiba Inu network.

Overnight, the total number of Shiba Inu coin wallets tripled from 1 million to over 3 million as enthusiasts rushed to prepare for the forthcoming Shibarium launch. This massive influx demonstrated the crypto community’s eagerness to put Shibarium to use.

But what exactly is Shibarium, how will it impact the SHIB ecosystem, and why are so many hopeful that this Layer 2 solution will drive SHIB to new heights? Let’s take a deep dive into understanding Shibarium and its game-changing potential.

What is Shibarium?

Shibarium is a Layer 2 solution being built specifically for the Shiba Inu network.

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Layer 2 refers to a secondary framework that sits on top of an existing blockchain network to enable faster transaction times, lower fees, and greater throughput. Major Layer 2 solutions used today include Polygon for Ethereum and Lightning Network for Bitcoin.

Shibarium will serve as the native Layer 2 for SHIB, taking transaction pressure off the underlying Ethereum blockchain and vastly improving usability. The core goals and benefits of the Shibarium network are:

  • Speed – Shibarium will enable transactions that settle in real time or under one second, up to 100x faster than Ethereum L1. This removes lag and makes SHIB far more practical for regular purchases and transactions.
  • Low Fees – By moving transactions off the Ethereum mainnet, Shibarium will lower gas costs from an average of $20 on ETH to just pennies on its Layer 2. Cheaper transactions incentivize trading and using SHIB as everyday money.
  • Scalability – As a Layer 2, Shibarium does not face the challenges of Ethereum’s limited throughput. The new network will be able to easily scale up to meet higher demand and transaction volumes as SHIB adoption grows.
  • Smart Contracts – Shibarium will support all the same smart contract functionalities as Ethereum, ensuring seamless integration of SHIB into the Ethereum DeFi ecosystem.
  • Environmentally Friendly – By relying on validators instead of energy-intensive proof of work, Shibarium will be far more eco-friendly than typical Layer 1s.

Shibarium will share similarities with other chains like Polygon and Avalanche while being optimized specifically for Shiba Inu. The developers have dubbed it the “Doggy DAO” – a decentralized, community-run network ideal for powering SHIB utility and transactions.

Shibarium Launch and Roadmap

Shibarium has been in development since early 2021, though specific details have been sparse. The database layer was completed in spring 2022, marking a major milestone. In July 2022, the team announced they will introduce a beta version of Shibarium alongside a brand new stablecoin tied to SHIB value – SHI.

This beta launch will enable developers and dedicated community members to test Shibarium functionality and integration. The full public launch is slated for Q3/Q4 2022 depending on the progress of the beta period.

Beyond launch, the Shibarium roadmap includes:

  • SHI stablecoin integration
  • Establishing network security through validators
  • Advanced wallet functionality
  • DAO governance by SHIB holders
  • Liquidity incentives and Staking options
  • On/Off ramps for moving between Layers 1 and 2
  • NFT Minting capabilities
  • Interoperability bridges to Ethereum, Bitcoin and other major chains

Delivering these roadmap items will provide a robust ecosystem for SHIB powered by Shibarium as its scalable, low-cost base layer.

Attention: The Pi Network Road Map

How Will Shibarium Impact SHIB Value?

The possibilities enabled by Shibarium have SHIB holders extremely excited for future growth potential. There are several key ways Shibarium could rocket SHIB value, utility and adoption:

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Faster, Cheaper Transactions

By far the biggest limitation of SHIB currently is Ethereum’s high gas fees and sluggish transaction times. Trading or transacting SHIB directly on Ethereum is impractical – even prohibitive – due to network congestion.

For example, approving a Uniswap V3 SHIB swap currently costs ~$15. Buying a $5 SHIB coffee with crypto would require $20 in just gas!

Shibarium would reduce these costs to mere pennies, finally making SHIB usable for everyday transactions. Purchasing, tipping, trading and redeeming SHIB becomes viable. This drives significant organic utility and volume.

Unlocking Ethereum DeFi

High Ethereum fees have also prevented SHIB from tapping into the vibrant Ethereum DeFi ecosystem. Staking, liquidity mining and governance protocols like Uniswap, Curve and Maker are inaccessible to most SHIB holders.

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Shibarium will enable SHIB to integrate with Ethereum DeFi thanks to fast and cheap transactions. This brings a wave of new use cases:

  • SHIB staking rewards
  • SHIB/ETH liquidity pools
  • New SHIB trading pairs
  • SHIB DAOs and voting utility
  • Lending/borrowing SHIB with over-collateralization

Access to DeFi supercharges what users can do with their SHIB holdings, beyond just buying and selling. The additional utility cases increase organic demand.

Facilitating Merchant Use

Finally, Shibarium could enable small businesses to seriously consider accepting SHIB for payment. High fees make crypto commerce nonviable despite merchant interest. Shibarium’s tiny transaction fees change the math, letting businesses accept SHIB purchases profitably.

Growing merchant acceptance leads to increased circulation. Consumers no longer have to offramp to fiat if enough locations take crypto. This greases the economics incentivizing owners to hold, not sell their SHIB.

The community hopes these dynamics attach real-world value and utility to SHIB, rather than just speculative hype-value. The de facto “currency of the internet” slogan becomes far more viable with Shibarium as its performance layer.

Why are Investors Excited?

Investors have piled into SHIB leading up to the Shibarium launch for good reason.

While alternative blockchains like Solana, Cardano and others could enable faster/cheaper transactions, having a purpose-built Layer 2 for the specific SHIB community and coin has major advantages.

Rather than navigating fragmented ecosystems, developers and power users can tap directly into the sizable existing SHIB community on its chain. Innovations will enrich the SHIB network directly rather than benefit separate blockchain projects and token holders.

Plus, the community-run ethos ensures Shibarium will evolve to meet the needs of SHIB’s core user base, not just chase profits or VC interests like more corporate chains. Shibarium is by SHIB holders, for SHIB holders – a refreshing value prop.

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For these reasons, investors and analysts predict Shibarium will usher in the next evolution of capabilities for the headline-grabbing Shiba Inu coin. The raw potential of SHIB has been unleashed thanks to the scaling power of its native Layer 2.

Shibarium Use Cases and Functionality

Now that we’ve covered the basics of Shibarium and its potential impact, let’s explore some of the key use cases and functionality that will define the next-gen SHIB network:

SHI Stablecoin

A marquee feature of Shibarium is the introduction of SHI, a new stablecoin linked to the value of SHIB. SHI will launch alongside Shibarium in beta and serve as the primary medium for transactions on Layer 2.

SHI removes volatility concerns. Sending, paying or lending SHIB without worrying about price shifts will be a game changer. Transactions can rely on a steady, predictable SHI value rather than more volatile SHIB.

Yet unlike traditional fiat-backed stablecoins, SHI maintains deep ties to SHIB by tracking its value. This keeps the stablecoin connected to the broader ecosystem and goals of the Shiba Inu community.

SHI will allow users to tap utilities like DeFi and smart contracts on Shibarium without the instability of a normal crypto asset. However the SHIB-SHI peg will still reflect gains if the SHIB value rises.

Validators and DAO Voting

Shibarium will be secured by an initial set of validators who stake SHIB in exchange for a portion of transaction fees. Validators will eventually be permissionless – anyone with enough staked SHIB can participate to earn rewards.

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Validators will also coordinate upgrades, bugs and management issues on-chain via a DAO governance structure tied to staked holdings.

This embodies Shibarium’s community-run spirit guided by the interests of SHIB investors. Via the DAO, the broader user base has a say in protocol changes rather than a centralized team.

Active voting participation will likely amplify staking yields. The DAO could even divert a portion of treasury funds to further reward engaged community members who shape Shibarium’s evolution.

Retail and Commercial Applications

On the user side, Shibarium will make retail and commercial applications viable. This spans everyday purchases, merchant payments, gaming integrations, content creator tipping, NFT marketplaces and more.

With fast and cheap transactions, SHIB moves from a speculative asset to a true cryptocurrency. Consumers can pay for goods, services, experiences and more with SHIB rather than converting to fiat first.

More businesses will accept SHIB as payment knowing the tiny Shibarium fees allow quick settlement without eating into profit margins. This is the next step toward mainstreaming SHIB as an internet currency.

Layer 2 Financial Tools

Shibarium will grant easy access to Layer 2-based DeFi protocols purpose-built for the network. Think trading, lending, liquidity pools, synthetic assets, margin trading and other financial tools running efficiently via SHIB-backed liquidity.

On Shibarium, advanced investing strategies once exclusive to whales become accessible to regular holders. The possibilities will expand as development ramps up.

These Layer 2 financial tools attach additional utility to SHIB beyond just P2P payments. Holding SHIB grants access to a suite of ways to utilize your tokens and earn yields.

NFTs and the Metaverse

NFTs have already seen heavy adoption among the Shiba Inu community. Shibarium will take that engagement to the next level with fast minting and trading right on Layer 2.

More ambitious integrations could bring SHIB and Shibarium into metaverse environments, MMO gaming economies, VR worlds and beyond. Fast throughput opens doors to integrating SHIB as true in-world currency rather than just collectables.

As virtual worlds evolve, SHIB has an opportunity to flourish as their preferred cryptocurrency underpinning both transactions and ownership representing virtual goods, items, experiences and more.

When Will We See Impact?

Shibarium’s full benefits will take time to roll out gradually even after launch. Do not expect overnight transformation.

Initially, changes will be subtle – early DeFi protocols launching, validators securing the chain, and community architects exploring possibilities.

Over subsequent months and years, expect more noticeable expansion in areas like:

  • Mainstream merchant acceptance of SHIB payments
  • Vibrant NFT ecosystems and metaverse integrations
  • Established DeFi tools comparable to Ethereum
  • Decentralized governance precedents

Wider adoption and influence will follow as Shibarium becomes more robust, proven and integrated. Rome wasn’t built in a day – but the foundations being laid with Shibarium are impressive.

For true believers in SHIB’s long-term potential, Shibarium is the most promising development since the token’s creation. The community now has a scalable base layer matching the bold SHIB vision.

The question is no longer if SHIB can evolve from meme token to functional cryptocurrency – but how quickly Shibarium can make this transition a reality.

The Road Ahead

Shibarium represents a watershed moment for the Shiba Inu project, unlocking SHIB’s potential by overcoming the limitations of Ethereum’s Layer 1.

With these barriers removed, SHIB may finally blossom into its destiny as the flagship of decentralized internet money and culture. Rather than mere hype, Shibarium offers the substance to match the FOMO.

In true DAO fashion, the community holds the keys to increasing adoption and showcasing what’s possible on this new Shiba Inu-themed Layer 2 network.

If you’re a believer in SHIB’s long-term vision, Shibarium deserves your attention and excitement. The doggy DAO era approaches.

Read more here.

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I am a multi-faceted professional with a strong foundation in Business and Finance, honed since 2020. Additionally, I possess a deep passion for automobiles, serving as an avid car enthusiast. In parallel to my diverse interests, I am also a dedicated student pursuing a career in the medical field.
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