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Shiba Inu (SHIB), the industry’s second-largest meme coin by market capitalization, has reportedly raised the sum of $12 million through sales of $TREAT. Per the report, top venture capital firms like Animoca Brands, Polygon Ventures and DWF Ventures, among others, participated in the round.
The goal of this funding is to develop the protocol’s layer-3 scaling solution as a Shibarium successor. The layer-3 blockchain will be built on Shibarium and ultimately leverage the security and robust liquidity status of the underlying Ethereum protocol.
Directional growth tracks
The Shiba Inu project started as meme coin, one that showcased the power of the community. As a meme coin, Shiba Inu skyrocketed to a new high in terms of user growth and market capitalization.
After reaching its climax, the project’s core developers shifted their goals to explore more defined utility for Shiba Inu. This utility drive culminated in the launch of Shibarium, its layer-2 scaling solution, in August of last year. Shibarium effectively joined the hoard of layer-2 protocols helping to solve Ethereum’s congestion woes.
Since its inception, Shibarium has hit many milestones in its transaction count, registered wallet addresses and other core metrics. The forthcoming L3 chain will build on this innovation to further expand Shiba Inu’s influence in the Web3 ecosystem.
Advancing Shiba Inu technology integration
According to reports, Shiba Inu is not planning to launch the layer-3 solution as usual. As such, it is deploying Fully Homomorphic Encryption (FHE) technology through start-up Zama.
While many believe Shibarium still has a long way to go before catching up with other competing chains, the development of layer 3 might be considered a major detraction overall. Some key developers within the Ethereum ecosystem are somehow antagonistic to a layer-3 blockchain, with the argument hinging on how Ethereum L2s are doing a great job of simplifying transactions on the blockchain post-Dencun Upgrade.
Source: https://u.today/shiba-inu-bags-12-million-from-investors-to-develop-shibarium-successor