Shibarium Faces Tough Competition from Polygon-Backed ShibChain

• Shiba Inu’s rival ShibChain has been launched on the Polygon’s Chain Development Kit (CDK).

• According to the report, Shiba Inu’s native token SHIB would be the main currency for all applications on the protocol. 

Shibarium was recently launched as a layer 2 solution meant to increase transaction speed and lower costs in the Shiba Inu ecosystem. Developers have also introduced a token burn mechanism that is directly linked to the activities on the Shibarium network. In August 2023, this initiative was launched on the mainnet. Four months after its launch, a rival project dubbed ShibChain has been unveiled on Polygon’s Chain Development Kit (CDK) framework.

According to reports, ShibChain operates as an Ethereum L2 protocol that would use Shiba Inu’s (SHIB) for its gas fees. 300 SHIB ($0.003) would be charged for each transaction facilitated on the network. In addition, transactions would be processed at 2000 Transactions Per Second (TPS). Comparatively, Shibarium uses ShibaSwap (BONE) as its gas fee.

The ShibChain would enable Shiba Inu enthusiasts to spend their tokens on a variety of services including games, Non-fungible tokens (NFTs), and Decentralized Finance (DeFi). Before the launch, a section of the crypto community expected Ethereum to be the protocol of choice, however, Polygon was the preferred destination. Reports also explain that SHIB would be the currency for all applications on the protocol, and would bring utility to the Shiba Inu ecosystem. 

ShibChain explained:

Long-term value thrives on genuine use, not just burns. ShibChain creates a genuine demand for $SHIB with real-world applications. Help drive global adoption to $SHIB & ShibChain with our community-powered movement.

Polygon and Shiba Inu Reacts to ShibChain Launch 

Earlier this month, Polygon Labs announced that Indian e-commerce company Flipkart is planning to make use of its CDK-deployed Layer 2 chain for its Web3.0 loyalty program FireDrops. The partnership with Polygon was to accelerate the building of an Ethereum-based zero-knowledge (ZK) L2 network through the utilization of Polygon CDK. 

FireDrops envisions a future where a loyalty layer allows users who have a track record with a brand to unlock larger rewards, get early access to discount pricing for products in high demand, and allow for more interesting and creative ways for users to earn rewards from their favorite brands.

Polygon has also announced that it is ceasing its contribution to the Edge framework (Supernets). The reason is that it wants to divert its resources to the Chain Development Kit (CDK). CDK has been in high demand among projects with the likes of “OKX, Astar, Canto, Palm Network, Aavegotchi, IDEX, Nubank, and Manta Network” targeting it for their layer 2 network developments. It is reported to provide an important advantage over the Edge.

The price of Polygon (MATIC) is currently reacting strongly to this news as it surged by 8.7% in the last 24 hours to trade at $0.851568. However, the asset has declined by 2% in the last seven days. According to market data, MATIC has made a 62% surge in the last three months, adding $0.327107 to its previous price. 

Shiba Inu has also had a price surge of 1.8% in the last 24 hours to trade at $0.000011. This takes its weekly growth to 6% and a market cap of $6,204,830,999 according to data.