Shiba Inu legitimacy analysis after launch of Layer 2 solution

  • Shiba Inu announces its second layer Shibarium solution.
  • Shibarium aims to legalize SHIB and boost DeFi growth, but has been met with skepticism in the short term.

According to an announcement on January 16, Shiba Inu’s [SHIB] It will soon launch its own Layer 2 solution, called Shibarium. This move by the Shiba Inu is significant for the project as it aims to delve into the second layer space and legalize its cryptocurrency and protocol.

How much is 1,10,100 SHIB worth today?

The Shiba Inu gets into the hype from the second floor

One of the reasons for the increasing sophistication in the Shiba Inu ecosystem can be attributed to the fact that it is still seen as a memecoin. However, with the launch of the second layer solution, Shiba Inu will try to break away from this perception and establish itself as a legitimate player in the cryptocurrency space.

Shibarium will run on top of Ethereum [ETH] blockchain, and will be used by SHIB, LEASH, and BONE tokens. According to the Shiba Inu team, Shibarium will bring the benefits of scalability, faster transaction times, lower fees, and an expanded development framework. In addition, the BONE token will be used for all gas fees for transactions on the Layer 2 solution.

This development could also help Shiba Inu to grow in the DeFi space. Over the past month, ShibaSwap, Shiba Inu’s DeFi protocol, has seen Total Value Locked (TVL) grow from $26.31 million to $31.19 million.

Source: Defillama

However, while the Shiba Inu’s DeFi business has seen improvements, the SHIB token has faced some challenges.

However, its speed had skyrocketed, indicating an increase in SHIB’s turnover.

Source: feeling

Traders have a “bone” to choose from

Although the update on the second layer solution could send SHIB’s price higher, traders were skeptical about memecoin. According to Coinglass data, there were a large number of trades for short SHIB. This may increase selling pressure on SHIB in the short term.

Realistic or not, this is SHIB’s market cap in terms of BTC

But in the long term, the launch of Shibarium may lead to more interest in the SHIB token and its ecosystem. At press time, the price of SHIB is at $0.00001043, having gained 4.67% in the past 24 hours.

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