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.
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.
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.
$SHIB: forming Tight Bull Pennant for possible breakout followed by parabolic upside moves. Nearest target will be $0.00002050, although with parabolic moves price could breach any resistances as long as buying momentum persist. pic.twitter.com/AYd95FyYdB— Bitrue (@BitrueOfficial) August 17, 2022
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.