Why this update increases the value of Shiba Inu (SHIB).

The community behind Shiba Inu (SHIB), commonly known as the Shib Army, is looking forward to significant progress in the MemCoin Layer 2 Network Shibarium.

This anticipated milestone is set to significantly impact SHIB's price performance and various key metrics across the network.

Shibarium's ‘critical' next step

Last week, Shibarium's auto-burn feature was rolled out to the Puppet testnet, further expanding its use. However, Shiba Inu market analyst Lucy hinted at more updates coming soon for this ecosystem.

Once fully implemented, these updates are expected to increase Shibarium's Total Value Locked (TVL) and enhance the overall experience for dedicated SHIB fans.

“We're on the brink of a major milestone for the Shibarium, and I'm not just talking about auto-ignitions. This will boost TVL and provide a home for SHIB loyalists,” said Lucy.

Since its inception, the Shibarium has flourished with widespread adoption and success. The network is integrated with major cryptocurrency players such as Gate.io, and transaction volumes recently surpassed 300 million.

While Lucy refrained from revealing specific details about the upcoming updates, community members have speculated that the development will revolve around SHIB's identity. The SHIB ID is designed to provide consistent identification to users across all SHIB IN projects.

“Your Shibdentity provides a secure, integrated way to establish and maintain your digital presence in today's interconnected world. At the same time, Web3 enhances your journey, empowering you to do more and be more, the team behind Shiba Inu said in a post.

This development is in line with the Digital Asset Group's efforts to transform into a versatile blockchain network.

Shiba Inu (SHIB) price goes up.

Optimism around evolution has effectively countered SHIB's recent lackluster performance.

In fact, data from BeInCrypto shows that the digital asset has seen a modest increase of 0.03% to reach $0.00000903 in the past day. This represents a significant reversal compared to SHIB's 4% decline last week and a further 16% decline over the past 30 days.

Meanwhile, industry analysts are expecting a continuation of this positive trend in the coming months. According to them, flows into the Bitcoin Exchange Traded Fund (ETF) can flow into other cryptocurrencies such as SHIB.

“At the end of the day, those who sold their SHIB at a discount will tire, SHIB will be oversold and ShibaInu will rise again like a phoenix,” wrote one market analyst.

Despite these bright predictions, it is important to acknowledge the inherent unpredictability of the crypto market.