Suspense Builds as Shiba Inu (SHIB) Price Awaits Shibarium

2023-08-08, 07:43

The price of SHIB fluctuated within a small channel below the $0.0000080 level.

There was less transactional activity on the Shiba Inu network due to the neutral investor sentiment towards SHIB.

The launch of Shibarium is likely to increase the utility of the Shiba Token.

Keywords: Shiba Inu price, Shiba price, SHIB price, Shibarium, Shib token, Shiba Inu coin

Introduction

The Shiba Inu token market dynamics changed during the last two weeks of July as we approached the launch of Shibarium, an Ethereum layer-2 blockchain aimed at reducing bottlenecks and enhancing scalability of the Ethereum network.

Like any other layer-2 blockchain on Ethereum Shibarium will bundle multiple off-chain transactions before transferring them to the mainnet. Today, we will discuss the performance of the Shibarium Testnet.

Shiba Inu Hovers Around $0.0000080

For the greater part of the third and fourth weeks of July the price of SHIB token fluctuated just below $0.0000080. Basically, it spent much of that time moving in a small channel between $0.00000765 and $0.00000794. The following graph shows SHIB price performance during that period.

SHIB Price Performance – CoinGecko

This price action indicates that most SHIB holders are taking a neutral stance as they wait for the launch of the Shibarium mainnet. The on-chain price volatility data supports that analysis since there is a decrease in the transactional activity on this memecoin network.

Decrease in Transactional Activity as Shibarium Mainnet Launch Edges Closer

Due to the uncertainty surrounding the launch of the Shibarium mainnet there has been a decrease in SHIB transaction volumes. The on-chain data shows a decline in the total number of Shiba Inu tokens transferred since 14 July, a day after Ripple’s historic win over the SEC.

As Cryptoquant shows, there has been an 89% decrease in the number of SHIB Token transferred during the period between 14 to 24 July. The following diagram summarizes the change in SHIB transferred.

Change in Shiba Token Transferred - Cryptoquant

Specifically, the Shib Inu tokens transferred decreased from 11.5 trillion on 14 July to 1.3 trillion on 24 July. It is important to note that the token transferred shows a change in network activity of a specific cryptocurrency through aggregating the number of coins or tokens transacted among users within a day.

A decrease in the value indicates that the network has recorded less transaction volumes than before. Analysts believe that we may experience Lower SHIB transaction volumes until the launch of the Shibarium mainnet.

SHIB Experiences a Drop in Price Volatility

Data on Santiment shows that there has been a decrease in SHIB transactional activity which might have resulted in low price volatility between 14 and 24 July. In fact, the price volatility has dropped from 0.02 to 0.004 within that period.

In simple terms, price volatility is a measure of degree of change in price within a stated period. In most cases, when cryptocurrencies rally their price volatility increases. The volume of on-chain transactional activity also often rises during that time.

Network Activity on the Shibarium

What has been happening on the Shibarium Testnet or Puppynet contrast the Shiba Inu token transactional activity. Whereas SHIB experienced a decrease in transactional volumes there has been an increase in activity on Puppynet.

As of June, there were more than 20 million transactions on the Shibarium Testnet from around 16,000 wallets. Such a level of activity indicates high demand for the network. Remember that a testnet like Puppynet is a blockchain created for testing purposes. The activities that take place there mimic the ones that will occur on the mainnet when it is launched.

For instance, the average transaction time on Puppynet was five seconds. By July more than 21 million transactions were conducted on Shibarium’s Testnet involving more than 17 million wallets and 1.3 million blocks. You can see part of the statistics in the next diagram

Transaction Activity on Puppynet - Puppyscan

The diagram above shows daily transactions on Puppynet. The next picture gives additional details.

Transaction Activity on Puppynet - Puppyscan

The above screenshot shows the recent data in terms of total transactions, total blocks and total wallet addresses at the end of July. These figures indicate a high demand for the Shibarium network.

How Can Shibarium Affect the Price of SHIB

The launch of Shibarium could increase the utility of SHIB which is likely to push its demand up. The successful launch of this blockchain will enable the creation of the metaverse and gaming applications.

Already, there is a plan to introduce a metaverse before the end of this year. This will allow users to own their virtual land, create avatars and contribute to the in-game economy. Such developments are likely to increase investor interest in SHIB.

According to the developers, the launch of Shibarium will lead to a decrease in the supply of the Shiba Inu token. This is because after the launch of the mainnet it will be possible to burn SHIB, thereby reducing its circulating supply. In fact, the burn mechanism will convert BONE to SHIB which will be burned. Bone is the token which shall be used for paying transaction fees in Shibarium.

Therefore, the successful launch of Shibarium is critical to the future of the Shiba Inu token. Currently, there has been much activity on the testnet which has created much hope in the Shibarium eco.

Conclusion

The Shiba Inu token traded at a value slightly less than $0.0000080 during the second half of July. On the other hand, there was low transaction activity on the Shiba Inu network since investor sentiment was neutral during that period. Notably, the launch of the Shibarium mainnet is likely to create more utility for the Shiba Inu token.

FAQs about Shibarium

Has Shibarium launched?

Shibarium has not yet been launched. The developers expect to launch it in August this year. Currently, testing of the blockchain is taking place on the Shibarium Testnet called Puppynet.

Is Shib and Shibarium the same?

SHIB is a token while Shibarium will be a blockchain that will host many decentralized applications such as gaming protocols. Currently, Shibarium is in the testing phase.

What is Shibarium supposed to do?

Shibarium will be a blockchain that will host many decentralized applications. It will have a metaverse and various gaming protocols.

Author: Mashell C., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.