Shibarium, Shiba Inu’s Layer-2 blockchain, has recently surpassed the $1 million mark in Total Value Locked (TVL) for the first time since September, coinciding with a significant increase in SHIB token burn rates. This milestone reflects growing optimism and adoption within the Shibarium ecosystem.
Despite the TVL climbing above $1 million, a subsequent 8.98% decrease occurred within 24 hours, bringing the value down to $1.03 million. The peak of $1.13 million was recorded on December 23rd. On-chain data from DeFiLlama suggests that a substantial portion of the TVL originates from decentralized exchanges, with MARSWAP and ChewySwap contributing approximately $820,000 to the total TVL.
Additionally, Shibarium has seen an increase in transaction activity throughout December. The average daily transaction count reached 7 million, with the total number of transactions rising from 2.2 million blocks to 177 million. These figures highlight Shibarium’s growth and adoption since resolving initial issues after its launch in August.
Remarkably, the expansion within the Shiba Inu ecosystem aligns with a 97% increase in the SHIB token burn rate over the past week, resulting in the removal of over 17 billion SHIB tokens from circulation. The cumulative token burn has surpassed 410 trillion SHIB, indicating nearly half of Shiba Inu’s total supply has been burned, potentially influencing demand and price.
The reduction in circulating tokens has also led to a significant decrease in SHIB holdings on exchanges. On-chain data shows that more than 8 trillion SHIB worth $88 million has been withdrawn from crypto exchanges since November, suggesting a bullish market sentiment and investor commitment to holding their tokens.
Despite these positive indicators and outflows from exchanges, SHIB’s price only saw a 33% increase over the past month, lagging behind other altcoins that have ridden the wave of Bitcoin‘s incredible surge. For context, Solana-based Bonk Coin experienced a 373% increase in the same period. Nonetheless, analyst Ali Martinez points out that if Shiba Inu maintains support above $0.0000103, the next potential target could be $0.0000140.