Shiba Inu (SHIB-USD) continues to be one of the most interesting cryptocurrencies investors can follow. This dog-inspired token has consistently provided volatility only traders could like. However, looking at the token’s long-term chart, it’s clear that speculative surges have made the digital asset a favorite since its inception in 2020.
Shiba Inu’s value is generally derived from the community behind the project. Like other meme tokens, there’s not really a lot under the hood. That is, when comparing SHIB to other smart contract blockchains with real utility-driving use cases.
This year, the bears have won out with this thesis. On a year-to-date (YTD) basis, SHIB remains down nearly 40%. However, Shiba Inu does have a potentially compelling layer-2 solution on the way.
So, let’s dive into what investors may want to know about this scaling platform.
What Does Shibarium Mean for Shiba Inu?
As InvestorPlace contributor William White recently pointed out, Shibarium is Shiba Inu’s layer-2 solution aimed at lowering transaction fees for SHIB and expanding the project’s reach. By allowing for more transactions to take place with SHIB, the hope is other decentralized applications will be built aligned with the network.
For now, this is a speculative catalyst. However, some comments from a key developer — saying that Shibarium could be coming soon — have the market excited. While a specific date is not yet circulating, rumors have once again begun to take over on social media. As the ultimate launch date approaches, investors may be readying themselves for yet another SHIB rally. This time, based on something fundamental.
I remain almost entirely skeptical of Shiba Inu. But I do have to say this is an intriguing catalyst to watch. Perhaps there will be some real value created in the ecosystem. Given the size and voracity of the user base, I wouldn’t count that possibility out.
Still, I remain happily on the sidelines with this one for now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.