Shiba Inu Deploys Alpha Layer: Can SHIB Price Break Out of Bearish Trend?
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In a major move for the future of the Shiba Inu ecosystem, the development team has just announced the SHIB Alpha Layer, a groundbreaking upgrade that expands the practical applicability of Shibarium, SHIB’s Layer-2 blockchain. However, the question remains: will the technological improvements be enough to take SHIB price out of the “zero burn” zone?
Alpha Layer: A Technical Upgrade for Shibarium
Built in partnership with ElderLabs, the Alpha Layer provides an abstract Rollup module stack, anchored directly to the Shibarium chain. Highlights of the Alpha Layer are:
Support for multi-gas tokens (multi-transaction fee types)
Integration of Full Homomorphic Encryption (FHE) via ZAMA, an encryption solution that allows data processing without decryption
Ability to write encrypted smart contracts, supporting more complex dApps
Preparing for Layer-3 payments, providing native interoperability and instant cross-chain bridges
This is a strategic move that brings Shibarium closer to becoming a multi-purpose Web3 platform, going beyond the original Shiba Inu meme coin definition.
How does Shibarium currently operate?
To date, Shibarium is operating core DeFi products:
K9 Finance DAO: LSD staking derivatives protocol
ShibaSwap DEX: Main decentralized exchange
WoofSwap & ChewySwap: Other community exchanges
According to DefiLlama, the Total Value Locked (TVL) on Shibarium is about $3.69 million, of which:
$1.64 million comes from K9 Finance DAO
$1.16 million from ShibaSwap
About $800,000 from other DEXs
Although modest compared to leading DeFi blockchains, these numbers still reflect stable operations and potential expansion, especially in the context of the current market under great pressure.
SHIB Price: Strong increase or... continue to "burn"?
In December 2024, when Shibarium's TVL peaked at $11 million, the price of SHIB had surged, creating expectations for a new bull run if TVL continued to be pushed. However, as of now, the price of SHIB has dropped nearly 10% in the past week, following the decline of the entire cryptocurrency market due to escalating geopolitical tensions in the Middle East.
The target price of $0.00003 was expected if the Alpha Layer upgrade created ecosystem momentum, but with the prevailing bearish sentiment, this possibility is temporarily threatened.
A message from the SHIB team: "True warriors build in storms"
Lucie S - Head of Marketing at Shiba Inu shared that this is the time for the SHIB developers and community to continue building in blood and fire, instead of running away in fear. “Real warriors build through bloodbaths,” she asserts, implying that steadfast players will be rewarded when the market recovers.
The Downside: Technical Improvements Not Enough to Drive Price
While Alpha Layer is a huge technical leap forward, it is not yet immediately reflected in SHIB’s price. Many investors still question whether the utility value is enough to change the “meme” core of the project, or will SHIB continue to be subject to speculative trends and market sentiment?
Why is this important?
In a space where meme coin projects often lack real utility, Shiba Inu is trying to break that stereotype by building real infrastructure for developers and the Web3 community. With Alpha Layer, SHIB is one step closer to becoming a full-fledged blockchain platform, rather than just an Internet cultural icon.