Periods of market consolidation often leave cryptocurrency holders questioning whether the current quiet is a prelude to a significant shift. Shiba Inu finds itself in such a juncture, with its price approaching a two-year low. However, an upcoming major upgrade to Shibarium is reigniting discussions about the token's potential resurgence.
Shiba Inu Ecosystem Embraces Enhanced Privacy on Shibarium
A notable development within the Shiba Inu ecosystem signals a strategic pivot towards enhanced privacy features on its Layer 2 solution, Shibarium. The Shiba Inu team is actively preparing a substantial privacy-focused upgrade for Shibarium, as reported by TheCryptoBasic.
Marketing executive Lucie has confirmed that the network is progressing towards implementing full privacy functionalities, powered by Zama's Fully Homomorphic Encryption (FHE) technology. This integration is anticipated to introduce fully confidential smart contracts to Shibarium, alongside comprehensive privacy protections for the entire ecosystem and its gas token, BONE, potentially by the end of the second quarter of 2026.
Zama → Shibarium Privacy upgrade incoming
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) November 27, 2025
That means that before the end of Q2 2026, we could finally get full on chain privacy and confidential smart contracts on Shibarium and Bone thanks to Zama’s Fully Homomorphic Encryption tech. pic.twitter.com/0uc4qNZ2co
TheCryptoBasic further elaborated on the genesis of this initiative, tracing it back to a strategic partnership announced in February 2024 between the Shiba Inu ecosystem and Zama, a Paris-based cryptography firm. This collaboration was initially presented in the Shiba Inu magazine as a significant step towards redefining the ecosystem's security standards. The ongoing progress of Zama's advanced encryption technology indicates that this vision is moving closer to fruition.
TheCryptoBasic also shared a visual representation of Zama's protocol roadmap, highlighting that a public testnet is already operational on Ethereum's Sepolia network. The roadmap indicates that the mainnet deployment and a ZAMA token event are slated for before the end of the current year. The subsequent phase, planned for the first half of 2026, aims to extend support to EVM networks, including Shibarium. Furthermore, Zama's mainnet deployment on Solana is scheduled for the latter half of 2026.
The implications of this upgrade extend beyond mere technical advancement. Zama's technology enables smart contracts to process encrypted inputs and generate encrypted outputs without compromising data confidentiality. This capability unlocks a new spectrum of possibilities for Shibarium users and developers, ranging from private transactions to confidential decentralized finance (DeFi) protocols. This emphasis on privacy could not only bolster security but also enhance Shibarium's competitive standing among Layer 2 networks.
Upon integration, Zama's technology would position Shibarium as one of the few blockchain networks supporting native FHE capabilities. This distinguishes it from typical meme-focused projects, transforming it into a privacy-centric ecosystem that stands apart from most EVM chains. To date, Shibarium has facilitated over 1.56 billion transactions, produced more than 14.33 million blocks, and seen engagement from over 270 million unique wallets since its launch in August 2023.
Distinguishing Shiba Inu Through Technological Advancement
The current price action of SHIB presents a challenging scenario for its long-term holders. The token's chart indicates a price range consistent with that observed around November 2023, characterized by sideways and gradually declining movement throughout 2024 and 2025. The sharp price surge experienced in early 2024 now appears distant relative to the current trading levels.
A neutral analysis of the chart suggests that the market is currently testing a support zone that held firm approximately two years ago. The price hovers around $0.00000886, nearing this critical level. Such patterns often emerge when market momentum wanes and buyer interest diminishes. A prevailing downward trend has been evident across much of 2025, with recent dips indicating SHIB's ongoing search for upward momentum.
Extended periods of consolidation like this can evoke comparisons to early-stage cryptocurrencies that required a distinct catalyst for recovery. Solana, for instance, experienced a similar phase following significant network challenges, with renewed demand only returning after new narratives surrounding its ecosystem gained traction. SHIB appears to be in a similar position, awaiting a narrative of comparable scale.
The impending Shibarium upgrade holds the potential to serve as this catalyst. The introduction of privacy features provides the ecosystem with a compelling use case that transcends its meme origins. Developers gain access to a platform that supports private smart contracts and privacy-enhancing interactions, while users can anticipate increased confidence in on-chain activities.
Can the Shiba Inu Upgrade Spark a Price Rebound for SHIB?
While significant upgrades typically generate enthusiasm, their impact on price is not always immediate. Shiba Inu has implemented various enhancements and introduced new utilities and tools over time, yet the token's price has struggled to regain its previous all-time highs. This recurring question resurfaces with each new development: could this particular upgrade prove to be different?
The establishment of a privacy-focused blockchain introduces a transformative element, fundamentally altering the potential trajectory of Shibarium. A transition from a meme-centric chain to a privacy-capable Layer 2 solution could attract a different class of users and activities. The introduction of confidential DeFi, privacy-preserving applications, and encrypted smart contracts represents substantive advancements rather than superficial enhancements.
The current chart data suggests that SHIB is at a critical juncture. A prolonged downtrend has evolved into a tightly consolidated trading range, a phase where market participants often determine the continuation or decline of a narrative. A robust upgrade aligns strategically with this moment, providing the market with tangible factors for evaluation.
Extended periods of declining price action can be disheartening. SHIB holders have observed the token's price approach a two-year low, yet the Shibarium privacy shift introduces an element that appears more substantial than previous upgrades. Zama's encryption technology may offer the ecosystem a new identity, potentially reviving interest over time.