• Shiba Inu (SHIB) prices rose 20% over the weekend, becoming one of the best-performing coins.
• The rise in value is attributed to the announcement of Shibarium, a decentralized blockchain identification system for Shiba Inu’s layer 2 scaling solution.
• Analysts believe bearish traders have been displaced from the SHIB market due to its sustained price decline before the weekend gains.
Shiba Inu Price Climbs 20%
Popular dog-themed meme coin Shiba Inu has seen its value rise by 20% to become one of the best-performing coins of the weekend. Shiba Inu (SHIB) prices rose from a low of $0.00000827 on Aug. 4 to $0.00001028 early on Aug. 6 according to CoinGecko statistics, advancing 12.24% over the last seven days.
Reasons Behind SHIB Price Jump
The meme coin is gaining traction on Binance and other crypto exchange platforms and has outpaced other popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE). Over the weekend, Bitcoin, Ethereum, and XRP lost 0.6%, 0.4%, and 6.9% of their values respectively; however, Dogecoin has enjoyed a 1% gain in the last day.
The price jump is remarkable considering growing risk aversion across tech and crypto markets after Fitch downgraded U.S.’s sovereign rating – analysts have chalked down SHIB’s performance to developers’ announcement of Shibarium – Shiba Inu’s layer 2 scaling solution that will offer an alternative to Ethereum and increase SHIB adoption & value . Additionally , bearish traders have been displaced from SHIB market due to its sustained price decline before weekend gains which opened up for more bullish traders resulting in weekend price jump .
Shibarium Launch Nears
There is also growing excitement among Shiba Inu community as they await imminent launch of Shibarium itself – According to Shytoshi Kusama , lead developer at Shiba Inu , Shibarium may be unveiled later in August at Blockchain Futurist Conference in Toronto where Shiba Inu is key sponsor . Santiment data indicates that social dominance for SHIb has reached multi month high of 2 . 914 % .
Significance Of Layer 2 Scaling Solution
Layer 2 solutions are essential for scalability & interoperability challenges faced by many blockchains today – This holds true especially with respect to Ethereum as it struggles with increasing gas fees throttling DeFi growth & dropping transaction throughput limiting dApp development potential . By utilizing L2 solutions like shibarium , developers will create separate chains running parallel with main chain allowing transactions offloaded from main chain while still being able to interact with it when needed thus improving scalability & reducing cost associated with main chain transactions .
Overall , there is growing optimism across shibarumy community regarding upcoming launch which should prove beneficial in terms long term prospects for shiva coin adoption & overall growth of defi space powered by ethereum blockchain .