This is how Shibarium has affected the Shiba Inu ecosystem

TL;DR

Shibarium has burned $1.5 million of SHIB and enabled low-cost transactions, driving the development of the ecosystem. Despite the protocol’s advance, SHIB fell 25% in two weeks amid a general decline in the meme coin sector. Help from Shibarium

The Shiba Inu layer 2 scaling solution officially saw the light of day in August of last year. While their ultimate goal is to encourage the development of the entire SHIB ecosystem, LUCIE (a prominent member of the meme coin team) recently gave more details on the matter.

They stated that Shibarium has already “made a big impact” for Shiba Inu by destroying more than $1.5 million worth of tokens, “directly reducing the circulating supply and adding to scarcity.” The protocol adopted the burning mechanism this summer.

LUCIE added that the L2 blockchain solution has enabled low-cost transactions, “enables penny exchanges” and makes the meme currency more accessible and practical for everyday use. Finally, they stated that Shibarium has built the foundation for future utilities, such as staking and governance systems, which could further strengthen the ecosystem.

“Most importantly, Shibarium has solidified $SHIB’s reputation as one of the strongest crypto assets. The recognition that SHIB has received, even from Forbes, was not achieved through social media hype , but thanks to the efforts of a dedicated development team that built Shibarium and delivered real progress for the ecosystem,” their statement reads.

SHIB Price Outlook

In fact, Shibarium has witnessed great progress during its relatively short existence. Data shows that the network has processed more than 675 million transactions, while wallet addresses recently surpassed the 2 million mark.

The subsequent advancement of the protocol is touted as one of the main factors that could fuel a Shiba Inu rally. However, the self-proclaimed Dogecoin killer has performed well over the past two weeks, plummeting 25%.

SHIB Price, Source: CoinGecko

Its downward trend coincides with the general correction of the cryptocurrency market and a bloodbath that has spread through the meme coin niche. Popular assets that have posted double-digit losses in the past 24 hours include Pepe (PEPE), Bonk Inu (BONK), Floki Inu (FLOKI), Popcat (POPCAT), Peanut the Squirrel (PNUT) and many more.

Those curious to see what other factors might have negatively impacted SHIB over the past few days can check out our article here.

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