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Dogechain

Layer 2 Shiba Inu: WHAT to expect and HOW to make profitThe Shiba Inu team announced the release of a Layer 2 network called Shibarium. Shibarium will run on top of the main Ethereum network, ensuring full interoperability and facilitating user and capital migration. The primary function of this network will be to launch and support decentralized applications. Shibarium will initially support $SHIB, $LEASH and $BONE as ecosystem tokens $BONE will become a native token of the network and will be used to pay for gas and reward validators. As a result, the team mentioned that Shibarium will implement a $SHIB token burning mechanism What are the pros? The main piece of good news is that the project, which began as a funny meme-token for amusement and community unity, is now getting a comprehensible product and application. The Shiba team decided against developing a separate non-EVM network in Rust or another language. They made the decision to join an EVM-like ecosystem. It will enable them to fight for the users as well as TVL. What are the cons? The native token is $BONE, not the main token of the ecosystem – $SHIB. The team may have concluded that it would protect them from the project failure, if something irreparable happened. In this case $SHIB would not get a hard hit. In our opinion, $SHIB will take the hit anyway. As we see in the main graphics, $SHIB and $BONE have a similar reaction. The only difference is in the percent of the price change as $BONE is a more volatile token. Thus, what is the purpose to create another token inside the ecosystem, if the main token can be recapitalized? The use of 3 tokens inside one blockchain is a weak point of the project. As we can see over time, there is no need to complicate the concept because a single native token suffices. This concept has stood the test of time and is more sustainable due to fewer risks. Another intriguing aspect is that the project team announced that Shibarium would have three main tokens, but that another token, $TREAT, would be created to stimulate users. In fact, four utility tokens will coexist on a single blockchain. It appears that the project does not require all of these tokens. If the project team recognizes the need for a mechanism to reduce the emission of $SHIB and develops one, why not use only one token within the network? Shibarium doesn't have any killer-features. According to Shibarium's announcement, the project will be similar to other L2 projects. The team selected a tried-and-true technology stack and built their own network. It's not bad, and it makes sense, but Shibarium will face competition from Arbitrum, Optimism, Sui, Aptos, Sei, Berachain, and Canto, all of which are based on ZK technologies. If you create such a mundane project, you should expect it to fail because you will be unable to attract talented developers and your network will lack projects like GMX. Users and TVL Let's be real. $SHIB is a mass-market token. Since 2021, its token customers and holders have all been users, the majority of whom simply desired a quick "to the moon" and an expensive sports car in their garage. These users have no idea what dapps are, and many of them are unable to use Metamask. Their user pattern is a "buy-hold-sell" strategy, and they do not require dapps or L2 because they do not understand what it is. The rest are advanced users who can profit from narratives and will profit from Shibarium via LP, NFT, and then leave. Shibarium will simply not have enough liquidity, TVL, or users to keep developers interested for an extended period of time. Without developers, there will be no strong products, no target users, no liquidity, and no TVL. Let’s consider Dogecoin as an example: The Dogechain TVL chart The $DOGE and $DC chart The highest TVL is shown in the chart's frame. As we can see, the greatest growth of TVL occurs when the price of $DOGE and $DC rises. It is also worth noting that each new local price increase is followed by less TVL growth on Dogecoin. Why is this so? The user base of dapps and onchain apps is losing faith in the Dogechain's success, but they don't have a choice, and others aren't just interested. We can assume that Dogechain does not attract new users and that existing users are less interested in the project. Consider the example of a good network TVL, where each token has a lower capitalization than $DOGE or $SHIB. Canto Hedera Optimism There is a chance that Shabarium will repeat the Dogechain story, with users returning only with token growth, and each return will be less impulsive. What can we do and how can we make money? Collect the $BONE and $SHIB stacks, and keep risk management in mind. The launch of Shibarium is unknown, as is what will happen to $BONE; Find projects that will be launched on Shibarium and add them to your watchlist. Find all markets where these projects are traded; Keep an eye on the announcements within the ecosystem and revise your watchlist and strategy as necessary; When you realize you can enter the market, just do it. In practice, we know that the first week following the launch will be the most profitable for those who were prepared and entered the ecosystem first; Remember the Dogechain lesson and avoid being greedy. In turn, we will monitor the evolution of the $SHIBA ecosystem and strive to provide users with as many tools as possible to profit from this narrative. We monitor market trends and try to provide traders with information that can help them receive profit so check links in our signature and join our community. Also write a comment what do you think about Shibarium and its prospects Thanks for reading!
by Samura0x
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