Ecosystem tokens Shiba Inu, Leash and Bone will be used to transact on the upcoming Ethereum-based blockchain.
Shibarium network’s native test network, Puppynet, crossed 10 million transactions earlier this week in a sign of rising activity ahead of a release on the mainnet planned for later this year.
Blockchain explorer data shows the Puppynet testnet has processed more than 11 million transactions from almost 15 million wallets after its launch on March 11. Much of that activity came in the past week, with more than 400,000 transactions over a 24-hour period on May 21,
The upcoming layer 2 network Shibarium will soon join the ever-growing fray of Ethereum-based blockchains, such as Arbitrum and Optimism, looking to solve the problems of scalability, speed, and expense.
Layer 2 refers to a set of off-chain solutions (separate blockchains) built on top of layer 1s that reduce bottlenecks with scaling and data. These bundle multiple off-chain transactions into a single layer 1 transaction, which helps reduce the data load and fees.
Shiba Inu developers have previously said Shibarium would have a focus on metaverse and gaming applications, especially as the non-fungible token (NFT) sector is expected to heat up in the coming years, apart from Shibarium’s use as a cheap settlement for decentralized applications (dapps) built on the network.
The launch could contribute to strong fundamentals for Shiba Inu, formed in the previous bull market as a Shiba Inu-themed meme coin, that has since tried to position itself as a serious project with its own blockchain network and dApp ecosystem.
This move could further bolster the fundamentals of Shiba Inu’s three ecosystem tokens: Shiba Inu (SHIB), Leash (LEASH) and Bone (BONE), which together command over $5 billion in market capitalization.
Each transaction on Shibarium will burn a certain amount of SHIB tokens, but the specific amount has not been decided yet. Burns refer to the permanent deletion of tokens from the total supply.