Shiba Inu (SHIB) saw a spike in utility after the project launched its Shibarium layer-2 network. The blockchain launch meant that SHIB was no longer an ERC-20 token on the Ethereum network. The Shibarium network also led to the creation of hundreds of applications within the SHIB ecosystem. There are about 1200 DApps (decentralized applications) built on the Shibarium network. The increasing number of applications on the Shibarium network has brought much-needed real-world use cases for the SHIB ecosystem. Let’s discuss if it will lead to SHIB hitting the $0.0001 mark.
Can the 1200 Applications on Shibarium Take Shiba Inu to $0.0001?
A rise in utility could lead to a surge in adoption for SHIB. Adoption is key for an asset to rally. While the number of applications on Shibarium has increased, the same cannot be said about the SHIB coin. SHIB’s price continues to struggle. The launch of the Shibarium network unlocked a lot of potential for the Shiba Inu ecosystem. But demand has still not risen as many fans anticipated.
SHIB’s lackluster performance over the last few years is likely because of the bearish sentiment looming over the crypto market. Bitcoin (BTC) and a few other cryptocurrencies have hit new highs over the last year. But the same cannot be said for a majority of the crypto assets.
The SHIB team is also reportedly working on a new burn mechanism on the Shibarium network. The new burn mechanism could potentially burn trillions of tokens yearly. This could lead to a sharp dip in supply over the years. If demand remains high and the supply drops, the asset could experience a massive price surge.
Also Read: One Key Factor Halts Shiba Inu’s Price, And It’s Not Burns
More applications on Shibarium could bring more users to the SHIB ecosystem. Such a scenario could lead to more adoption for SHIB and, consequently, a surge in the asset’s price. However, hitting $0.0001 anytime soon may be out of the picture.
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