One Article to Understand ShibaInu's L2 Scaling Solution: Why Shibarium Matters
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One Article to Understand ShibaInu's L2 Scaling Solution: Why Shibarium Matters
In any case, the Shibarium L2 will bring a new direction for the development of the entire ecosystem.
Navigating Web3 tides with focused insightsWritten by: Ignas
Compiled by: TechFlow
The ShibaInu meme-coin is launching a Layer 2 solution called Shibarium. With a market cap of $6.2B, it would become the second-largest L2 solution. But that’s not all — they are also building their own DEX, NFT platform, Metaverse, and stablecoin. Here's why you should pay attention:
ShibaSwap DEX launched in July 2021 with a TVL of $1.66 billion. Today, its TVL stands at just $30 million, yet it generates around $17 million in daily trading volume.
ShibaSwap offers users DIG (provide liquidity), BURY (stake), and SWAP functions, earning WOOF rewards through its incentive system.
$BONE is the governance token of ShibaSwap.
More interestingly, $BONE will be used to pay gas fees and reward validators/delegators on the upcoming Shibarium network.
Why an L2? In 2021, 10,000 Shiboshi NFTs sold out within 35 minutes. However, high gas fees plagued the sale, showing the team the need for an L2 solution.
The Shibarium L2 testnet is expected to launch within weeks. The number of Shibarium validators is capped at 100, each requiring a minimum stake of 10,000 BONE. Interestingly, while $BONE is used to pay gas, $SHIB will be burned from the base gas fee.
A stablecoin, $SHI, is also in development.
After the collapse of $UST, developers are exploring a new version. Details remain scarce, but a stablecoin backed by a meme token would certainly be intriguing.
Shib is also set to launch a new reward token, $TREAT. This appears aimed at avoiding further dilution of $BONE.
Few details about $TREAT have been released so far, but it will be used across ShibaSwap, Shiba Metaverse, Collectible Card Game, and as validator rewards. It sounds highly inflationary.
Finally, SHIB Metaverse is scheduled for release in 2023. The project has already begun selling portions of 100,595 plots of land. Users must lock $LEASH tokens or Shiboshis NFTs, and purchases can be made using ETH.
More importantly, SHIB is shifting from "meme economics" to "tokenomics," which is a double-edged sword. Moving away from meme-driven narratives means users will scrutinize $SHIB’s fundamentals rather than simply following hype.
If fundamentals are weak, prices may fall — which is precisely why this transition matters. Regardless, the Shibarium L2 will bring a new direction for the entire ecosystem’s development.
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Ignas | DeFi Research
