An entirely new approach to scaling for the meme currency market is something that Shibarium promises. An emergent multi-purpose platform for the Shiba Inu Currency (SHIB) ecosystem, which is based on the second layer.
It is anticipated that Shibarium will go live in the not-too-distant future. An experienced cryptocurrency analyst explains why introducing the SHIB narrative might be seen as a double-edged sword for the coin’s future.
First L2, then AMM: What distinguishes Shibarium?
Recently, a well-known cryptocurrency analyst named Defi Ignas made his way to Twitter to provide an assessment of all that know about Shibarium. It is an L2 solution that has received too much attention for devices centered on SHIB.
We need to figure out how to solve the issues of scalability, speed, and cost. Layer two network Shibarium is coming shortly, adding to the competition between Ethereum-based blockchains like Arbitrum and Optimism.
A blockchain that, like a beta test net, simulates the behavior of the actual world. Available to the general public within the following several weeks. This release is expected to happen in the next several weeks.
Layer 2 is a collection of off-chain solutions known as independent blockchains. These solutions are built on top of layer 1s to remove bottlenecks with scaling and data.
The Ethereum Foundation is responsible for the development of these solutions. This helps to reduce the amount of data load as well as the expenses that are connected with it. These merge numerous off-chain transactions into a single layer one transaction.
Within the next few weeks, the testnet version of Shibarium will be made available to the public. The platform will have just 100 validators, and the minimum stakes will be 10,000 BONE.
Additionally, BONE will be required to pay the platform’s petrol expenses. In addition, Shibarum will have its stablecoin, which will be denoted by the symbol SHI.
Although yet to learn a great deal about its precise design or how to use it, Defi Ignas thinks that it is peculiar: There is not much information available. However, it would have been entertaining to have a stablecoin backed by a meme token.
Will modify the architecture of the stablecoin to accommodate the newly introduced money, which will be referred to as TREAT.
The launch of SHIB: The Metaverse, scheduled to take place before the end of this calendar year, is likely not the least significant of the approaching events.
According to the research results, the structure of the metaverse is a replica of Sandbox (SAND).
Visitors to The Metaverse will be motivated to stake their claims on land parcels, according to SHIB. Upgrade them somehow, then give them to others so you may collect prizes and continue the cycle as often as possible.
We’ll stick to basics: risks and opportunities
Even though devoted SHIB fans are anxiously anticipating the release of Shibarium and the metaverse, which will both be introduced soon.
It still needs to be determined whether or not it will give the SHIB story a new lease of life or whether or not it will completely demolish it. Neither of these outcomes is certain at this time.
It would be an excellent demonstration of how the protocols can construct L2s independently rather than sending them to Optimism or Arbitrum to be deployed. Therefore, that keeps rivals from getting their hands on gas costs.
Conversely, it would restrict rivals from gaining access to gas taxes and revenue.
On the other hand, investors in SHIB would have to look at the milestones in 2023. The product is based on how it works with tokens, not on the hype surrounding the dog-coin ethos.
If the fundamentals no longer seem to be in the coin’s favor. The price will plummet regardless of whether or not there is demand for meme currencies.
According to the conclusions of Defi Ignas, Dogecoin (DOGE) is in a position to profit from the collapse of this hypothetical market.