Here’s why Shibarium launch could trigger a 100% Santa rally in Shiba Inu price
- Shiba Inu development team counts down the release of layer-2 scaling solution Shibarium, no launch date fixed yet.
- Shiba Inu price chart reveals possibility of a 100% upswing for SHIB within the next three to four weeks.
- While Shiba Inu’s competitor Dogecoin witnessed a price rally, the Shiba-Inu-themed meme coin is awaiting a bullish breakout.
Shiba Inu layer-2 scaling solution Shibarium’s development is on track. While SHIB holders await the launch date of the project, developers are dropping hints on Shibarium’s release. The long-term outlook on Shiba Inu is bullish, the meme coin could witness a 100% price rally within the next four weeks.
Shiba Inu layer-2 project Shibarium development is on track
Shiba Inu’s layer 2 scaling solution Shibarium is a secondary framework added on top of another blockchain to improve scalability and increase transaction speed. The scaling solution is aimed at enhancing the working of SHIB’s host chain, Ethereum.
Shibarium’s primary purpose is therefore the optimization of the host chain Ethereum and enhanced scalability. Ryoshi, the creator of the meme coin, set a few milestones for the project prior to his departure.
- Speeding up Shiba Inu transactions
- Lowering transaction fees and eliminating it completely within the Shiba ecosystem
- Making Shiba Inu NFT gaming easier by facilitating rapid transactions
- Contributing to Shiba Inu metaverse implementation and applications
- Working as a foundation for dApp development and other projects
Ryoshi’s vision was to change the perception of Shiba Inu as a meme coin and project it as a valuable asset in the crypto ecosystem.
The development of the layer-2 scaling solution is on track and SHIB holders are awaiting the announcement of a launch date.
ShibaTrophias, a Shiba Inu developer, recently posted a cryptic tweet. SHIB holders believe this could be a hint for the release of Shibarium.
Another riddle for people on this amazing Sunday for the community! Going to piggyback off the first. Hopefully this one gives more context :).
— Shib Trophias (@ShibaTrophias) December 11, 2022
As the minutes to midnight draws near, time ticks away. For now. the sands in the hourglass keep flowing through. What am I? pic.twitter.com/gEVql866bF
How Shibarium could act as a catalyst for SHIB price rally
Shiba Inu price plummeted 89.7% from its all-time high of $0.00008616, a year ago. Shibarium will divide transactions between the layer-1 chain (Ethereum) and the layer-2 protocol. The scaling solution will tackle a large portion of the transaction load and prevent them from overwhelming the underlying chain. The result will be a drop in network congestion.
Interestingly, “burn” acts as a catalyst for a cryptocurrency’s price. Shibarium has a built-in burn mechanism that allows SHIB holders to burn tokens and permanently remove them from circulation. Shibarium may charge a nominal transaction fee and use the fee to burn SHIB tokens, consistently driving the value of the meme coin higher, sustainably.
The incentive for burning is lower transaction fees for holders.
Ethereum is notorious for high transaction costs. Therefore, Ryoshi decided to shield Shiba Inu ecosystem users from high gas fees through a scaling solution. It's important to note that despite the Shibarium launch, Shiba Inu continues to rely on the Ethereum blockchain as its base chain.
Shibarium has passed the public testnet phase and developers deemed it a success.
Shiba Inu price could witness 100% rally fighting Dogecoin for the crown
Shiba Inu price formed a falling wedge on the six-month timeline as seen below. The meme coin is ready for a breakout, wiping out losses since mid-August 2022 and eyeing the $0.00001678 target.
SHIB/USDT price chart
Within the next four weeks, Shiba Inu price could attempt to break past resistances at the 50-day Exponential Moving Average (EMA) at $0.00000971, and $0.00001265, where the 200-day EMA is situated. Breaking past these two key levels, SHIB faces stiff resistance at the weekly high of $0.00001364.
Shiba Inu’s competitor Dogecoin witnessed price rallies several times over the past six months while the meme coin struggled to break out of a multi-month downtrend. A Santa rally could push SHIB price to the $0.00001678 target, and mark the end of the prolonged downtrend in the Shiba-Inu-themed meme coin.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
