Shiba Inu’s Layer-2 Blockchain is Now Operational

Shiba Inu's Layer-2 Blockchain, Shibarium, hopes to lure users to a low-fee ecosystem

Shibarium, a layer-2 solution that hopes to provide lower gas fees and faster transaction times for Shiba Inu, goes live. SHIB runs on the Ethereum blockchain, which can get congested and expensive. Shiba Inu's Layer-2 blockchain aims to solve this by operating alongside Ethereum as a scaling solution. 

According to the developers, Shibarium's main net launch provides the essential technical foundation "for the entire SHIB state." Today's launch follows an extensive beta testnet phase, which saw a reported 21 million users.

"Many in the tech world, inside and outside the blockchain ecosystem, are promising 'everything apps' and full user interactivity in the world of ideas, goods, services, and other opportunities," said Shiba Inu lead developer Shytoshi Kusama, in a message to Coin Desk.

The Ethereum layer-2 network will utilize BONE, TREAT, SHIB, and LEASH tokens for applications built on the blockchain, which could lift these tokens' prices as demand increases.

"However, any such promise must start at a place of community and decentralization," the developer added. "As part of one of the most popular cryptocurrencies on the planet, Shibarium lives at the intersection of those two principles in a way that eludes most other technologies, even many other blockchains."

What Is Shibarium?

Shibarium is a blockchain/layer-2 solution first proposed by Ryoshi, the creator of Shiba Inu Coin. Once it launches, SHIB tokens will be migrated to the L2.

Ryoshi initially used the phrase blockchain; Shibarium is more likely to be an L2 that sits on top of an already existing (Ethereum) blockchain. The SHIB creator said: "The line between an L2 and your own blockchain is thin; I mean, what is the difference between Matic L2 and BSC?"

It's worth noting here that Shibarium is not its own blockchain, nor does it mean a Shiba Inu 2.0 token is coming. SHIB will remain connected to Ethereum.

One of the primary goals will be to lower transaction fees for those in the Shiba ecosystem.

Ryoshi first said that Shibarium's transaction fees would be minimal or zero. Speaking on the Shiba Discord, Shytoshi Kusama, the Shiba Project Lead, said, "Shibarium will offer low fees for every service, game, or whatever builds on it."

Shiba Inu Price Surge

At the time of writing, SHIB is trading at $0.00001054, indicating a 0.2% increase in the last 24hrs and reaching $589 trillion in its supply, contributing to its current market capitalization of $6,065,438,492. This makes it the 14th most valuable cryptocurrency in the world, according to CoinmarketCap data.

The relative strength index (RSI in purple) exhibited a substantial increase last week, followed by a dip, yet it's now steadily climbing towards 70, currently positioned at 67. Concurrently, the price has broken above SHIB's 50-day moving average at $0.00000823 (shown in yellow), surpassing its 200-day moving average at $0.00000983 (illustrated in blue)

Moreover, the 200-day moving average has proven its resilience by prompting a price rebound for SHIB, potentially propelling the value toward its next resistance level at $0.00001409. This development has emboldened the bullish market sentiment, empowering buyers and increasing prices.