The most anticipated project in the Shiba Inu community is still Shibarium, but how will this forthcoming ecosystem expansion affect the price of SHIB?
The Shiba Inu community is getting increasingly excited as the launch of the Shibarium mainnet approaches. Investors are curious about how the layer-2 network will influence SHIB's price movement as they wait for the impending expansion of the Shiba Inu ecosystem.
Shiba Inu's Objective for Shibarium
It is important to make it clear that Shibarium's main goal is not to artificially raise the price of Shiba Inus. Instead, by solving important issues including lowering costs, accelerating transaction times, and increasing usefulness, the initiative seeks to improve the SHIB ecosystem. These enhancements are anticipated to raise demand for Shiba Inus, which could ultimately result in a price increase.
Shibarium aims to resolve the issue of the large circulating supply of SHIB. SHIB tokens will be burned by the L2 network using up to 70% of base fees on each transaction. These actions may result in a price increase by decreasing the supply of SHIB and maybe boosting the demand.
In order to gain insight into how Shibarium might affect SHIB's price, Finder polled 55 business executives in the FinTech sector last year. 25% of these experts thought Shibarium would increase the price of Shiba Inu, while 50% of them were unsure.
Only 3% of the experts claimed the network would have a bad effect, while the other 22% claimed it would have no effect.
The Impact of Shibarium Depends on Adoption
Shibarium's influence is significantly influenced by the adoption rate it experiences. While improving the Shiba Inu ecosystem and attracting utility is its main objective, how many investors and builders adopt Shibarium will determine how long-term benefits on SHIB's price will be felt. Increased adoption will result in more transactions being processed on the network, increasing utility and possibly supporting SHIB's price.
Based on the remarkable adoption rate of its beta testnet, Puppynet, Shibarium's future appears bright. The Crypto Basic recently published a report that stated Puppynet had exceeded 20 million transactions. Less than three months after its redeployment, the testnet hit this milestone.
According to data from Puppyscan, Puppynet has handled over 21.18 million transactions as of right now, with over 16.85 million wallets and 1.267 million blocks registered. Puppynet's adoption rate is an indication of how successfully Shibarium may draw interest from the crypto community.
Shiba inu price prediction after shibarium launch
In terms of specific numbers, many analysts and experts have made several Shiba Inu price predictions. On the internet there are multiple sources, and we can see few prominent sources like financial technology, stocks, and crypto news portal Coinpedia, which has set the shiba inu price prediction at $0.0000259 by the end of 2023.
Furthermore, the second prediction, made by CryptoNewsZ, projects SHIB to reach $0.0000289 in 2023, whereas CryptoNews is not as bullish, having set the price of Shiba Inu to end up somewhere in the range between $0.00001419 and $0.00002204 during the same period.