It’s been a wild week for the cryptocurrency markets, with Dog-themed coins (SHIB and DOGE) surging on the excitement of integration into popular exchanges.
Over the past week, two popular meme cryptocurrencies, Dogecoin and Shiba Inu, have risen dramatically in popularity. Weighed dogecoin and Shibarium, the Layer 2 solutions for Dogecoin and Shiba Inu, respectively, promise lower costs and faster transactions to the active communities of these two major meme currencies.
Prices seem to be booming because more people are interested in using Dogecoin, which allows investors to convert dogecoin (DOGE) into weighted dogecoin (wDOGE).
This makes it possible for users to buy tokens, non-fungible tokens (NFTs), and products created on the network. In turn, this creates more demand for the coins and drives up the price.
While the project has recently gained some traction, it is not an “official” Dogecoin project. Dogecoin Foundation’s legal and governance president Jens Wiechers stated that neither the foundation nor dogecoin developers are involved in the initiative.
Shiba Inu’s New L2 Technology
Dogecoin is facing a lot of competition from Shiba Inu, a Dogecoin rival that has also announced its own L2 blockchain. The network will be known as Shibarium and be built to allow faster and more scalable transactions. The L2 solution may help the Shiba Inu ecosystem flourish by allowing more innovation and development by providing developers tools to create new apps and services.
Shibarium is more likely to be an L2 that sits on top of an existing (Ethereum) blockchain than it is to be a standalone network. The SHIB creator said in his now-deleted blog post, “The line between an L2 and own blockchain is thin, I mean, what is the difference really between Matic L2 and BSC?” It’s important to remember that Shibarium is not a blockchain on its own, and there are no plans for a Shiba Inu 2.0 token. The current Shibu Inu token will remain tethered to the Ethereum network.
How Can L2s Impact the Tokens?
The launch of L2 solutions may positively impact the prices of both Dogecoin and Shiba Inu. Adding L2s will make these meme tokens more attractive to investors and users, as they offer lower transaction costs and faster speeds. This could lead to more mainstream adoption of these cryptocurrencies, which would in turn, drive up prices.
According to data, Dogecoin (DOGE), the biggest meme cryptocurrency by market cap, has gained 21% in the past seven days to trade near nine cents, the most since June 1. Shiba Inu (SHIB), the self-proclaimed dogecoin killer, rallied more than 50%, hitting a three-month high of $0.00001700. Market leaders bitcoin (BTC) and ether (ETH) have risen just 3% and 11%, respectively.
It’s essential to remember that there is a true chance for L2 solutions to better the transaction speeds and scalability of these cryptocurrencies, even though the increase of these meme coins may be because of speculation from investors.
What do you think about the recent surge in popularity of Dog coins? Do you think L2 solutions will help drive mainstream adoption of these meme currencies? Let us know your thoughts in the comments below!
