Shiba Inu's BONE Surges Double-Digit After Shibarium Team's Crucial Announcement

The Shiba Inu governance token BONE saw a double-digit spike this week following the first official announcement dropped by the Shibarium team.

On Thursday, the Shiba Inu team, through the official Twitter account of Shibarium, shared its first-ever official announcement related to the layer-2 solution.

The team cleared out rumors claiming that other "tokens in the network" are "required to utilize it" and noted that BONE "is and remains the only token selected for gas fees and use."

The positive news inspired the market and triggered BONE to reach another price level of $1.

BONE, which is currently the governance token of the ShibaSwap, the decentralized exchange platform of the Shiba Inu community, traded at $1.07 in the early hours of Friday, boasting a 30.5% surge from its $0.82 price on Dec. 31.

BONE will be the central token for Shibarium when it officially releases sometime this year, and with a new use case, investors are now accumulating the governance token to take profit in case its price spikes.

Shibarium is a layer-2 scaling solution for the Ethereum chain, which Shiba Inu is currently running. This kind of layer will pave the way for much bigger transfers at amazingly high speeds with low gas fees, aside from preventing congestion in the chain.

With Shibarium launched, the network could see an increased number of transactions and help the community burn SHIB, reducing the number of circulating supplies.

In July last year, Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, wrote, "Shibarium is a key component in this uncanny war we find ourselves in as it will allow us to move assets on the chain with minor BONE (gas) fees empowering micro transactions," highlighting the use case of the governance token.

Kusama, before the year ended, said that the team is currently busy "aligning, onboarding, and finalizing" Shibarium and polishing it so users could enjoy it smoothly on its release.

"Shibarium is being polished. Like when you put a car in a shop and it's done but they are washing and cleaning and polishing so you get that new car smell," the lead developer said.

While BONE is reaching new heights, the native token of the Shiba Inu community, SHIB, appears to be having a hard time lifting its price up.

As of 4:04 a.m. ET on Friday, SHIB was trading down 3.03% at $0.00000831 with a 24-hour volume of $206,644,464, according to the latest data from CoinMarketCap.

BONE, on the other hand, was trading down 1.15% at $1.07 at around the same time, with a 24-hour volume of $8,777,358, based on the latest data from CoinMarketCap.