Main navigation

Upcoming Shiba Inu Layer 2 Shibarium Utility Aided by This Key Factor: Details

Wed, 08/17/2022 - 13:31
article image
Tomiwabold Olajide
Shibarium, Layer 2 blockchain leverages BONE as gas
Upcoming Shiba Inu Layer 2 Shibarium Utility Aided by This Key Factor: Details
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

The public beta of Shibarium, a Layer 2 (L2) scaling solution, is expected to launch in Q3 of 2022, which has raised anticipation in the Shiba Inu community. One of Ethereum's most concerning issues is its high gas fees. Being an ERC-20 token, Shiba Inu is also affected by Ethereum network congestion and high gas costs.

Shibarium, a Layer 2 blockchain for Ethereum leveraging BONE as gas, will be the backbone of Shiba Inu projects that are in development and will offer scaling and low-cost solutions for a myriad of projects, according to Shiba Inu main developer Shytoshi Kusama.

Shiba Inu Discloses Key BONE Updates as Release of Shibarium Approaches

Reducing transaction costs for participants in the Shiba Inu ecosystem will be one of its main objectives. Unification, which is responsible for Shibarium development, stated that transactions would be "approved in seconds for pennies."

Ethereum focuses on reducing gas fees through Layer 2

In recent information updates, Ethereum underlined that, in its bid to reduce gas fees, efforts are now being concentrated on scaling user activity at Layer 2. The upcoming Merge upgrade may not lower gas fees, contrary to what many people believe, the team stated.

Ethereum Denies Claims That Merge Will Lead to Lower Gas Prices: Report

Likewise, it noted that transactions may not become "faster" after the Merge update. A transaction's "speed" can be measured in a few ways, including time to be included in a block and time to finalization. It noted that both of these may change slightly on the network but not in a way that users would notice.

This is why many expect Shibarium to be a game changer for Shiba Inu, given that transactions might become much faster and cheaper.

Shiba Inu forms "bull pennant"

According to the technical analysis provided by Bitrue exchange analysts, Shiba Inu may be forming a tight bull pennant for a possible breakout followed by parabolic upside moves. "The nearest target will be $0.00002050, although with parabolic moves price could breach any resistance as long as buying momentum persists," it said alongside a chart.

A bull pennant is a continuation pattern that is marked by a period of consolidation before the next upside move. At the time of publication, Shiba Inu was trading up 1.54% at $0.000016.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.