BONE token holders eagerly await the introduction of Shibarium as a promising Layer 2 (L2) scaling solution by Shiba Inu (SHIB), but face pressing questions about the delay in its release. While Shiba Inu tries to address criticism of meme coins’ practicality, the delayed start of Shibarium raises uncertainties about its impact on the overall value proposition and utility of the BONE token in the ShibaSwap ecosystem.
ShibaSwap, a decentralized finance protocol introduced in July 2021, offers a range of passive income-generating services such as staking, liquidity pools, and yield farming. Its main goal is to enhance the benefits and capabilities of the Shiba Inu ecosystem.
Within the ShibaSwap ecosystem, the BONE token serves as a governance token, allowing BONE holders to propose and vote on protocol changes through the Shiba Inu Doggy DAO. This enables the community to participate actively in shaping the future of ShibaSwap.
Moreover, BONE plays a critical role as the gas token for Shibarium, the upcoming L2 blockchain. Shibarium is currently in the testing beta phase and promises to enhance the scalability and efficiency of the Shiba Inu ecosystem.
The commitment of BONE extends to the destruction of SHIB tokens, a strategic measure aimed at reducing the circulating supply of the asset and potentially increasing its value in the future.
BONE, the utility backed token, has had a turbulent journey in 2023. First, it soared to its highest value in over a year in February, but has since suffered a significant decline. Consequently, almost all gains made during the initial upward phase in 2023 have been completely wiped out. Currently, CoinGecko reported that BONE has a value of $0.760704. Within the last 24 hours, it recorded a modest increase of 0.4%, while it has seen a 1.6% decline over the past seven days.
The delayed release of Shibarium, combined with the ongoing downtrend of BONE, has negatively affected investor sentiment. As the price of BONE continued to trend downwards, many investors faced significant losses of their holdings.
According to current data, the 30-day MVRV ratio remained negative throughout May, reaching -12.94% at the time of this report. This means that most addresses holding BONE would, on average, incur a loss of 12.94%.