The world’s second largest meme token, Shiba Inu (SHIB), has had a strong start to 2023, with a steady upward trend in the first few days of the year. However, the asset appears to be moving in the other direction today, with a decline that has nearly wiped out all of its gains acquired during its last fleeting rally.
SHIB will undergo a layer 2 upgrade
Coming soon to the Shiba Inu ecosystem is the Shibarium project, a Layer 2 blockchain. The Layer 2 blockchain is a scaling mechanism designed to alleviate the slow transaction performance of Shiba’s Ethereum-based host chain. Inu.
Recently, Shibarium chose Bone ShibaSwap (BONE) as a utility token to be used for payment of blockchain transaction fees and other purposes. Additionally, BONE allows users to vote on upcoming project proposals.
The launch of the Shibarium project has not been officially announced, but it is expected to happen early this year. In December, developer aka Shytoshi Kusama promised that Shibarium would be released soon. Also, the planned inclusion of additional features, such as SHIB token burning, may increase the value of Shiba Inu.
Whales are accumulating trillions of SHIBs
On-chain data shows ‘crypto whales’ have purchased Shiba Inu tokens by the billions. The number of Shiba Inus owned by Ethereum “whales” has increased dramatically. The SHIB token is now the most traded token among the top 1,000 whales, according to statistics compiled by Whale statisticsa blockchain tracker and whale survey tool.
These whales use Shiba Inu as their favorite smart contract, making it the most used of this group. Also, Whale Alert reported that a massive transfer of Shiba Inu tokens, over 3.37 trillion, took place from one unknown wallet to another. The sending wallet is now empty, while the receiving wallet contains the total amount of transferred tokens. At the time of this report, Shiba Inu was traded at a value of $0.00000843.
Shiba Inu is a meme-based cryptocurrency named after the popular dog breed Shiba Inu and featuring it as its mascot. It is also a deflationary coin, with a limited supply of around 1 quadrillion tokens.
As more tokens are purchased and removed from circulation, the value of the remaining tokens should increase. This scarcity can be attractive to investors looking for a potentially high return on their investment.
The coin’s strong presence on social media platforms, such as Twitter and Reddit, has helped generate buzz and hype around it. It is impossible to predict the future of any cryptocurrency, but it is clear that SHIB has caught the attention of ETH whales and many other investors.