Shiba Inu’s innovative Layer-2 scaling solution, Shibarium, is making significant waves in the crypto space as it recently registered more than 634,000 active addresses. Transaction activity has exploded, reaching a daily peak of 93,315 transactions on August 31, for a total of 698,642 transactions.
Notably, a whopping 52 million SHIB tokens have been burned in the past 24 hours, effectively reducing the circulating supply. As of now, SHIB is trading at $0.00000796, which represents a slight drop of 3.2%, with a 24-hour trading volume of $133,299,787. This increase in network activity follows the successful resolution of a technical issue last weekend.
Rising portfolios, but TVL is a concern
Despite a somewhat shaky launch, Shibarium currently boasts an impressive 600,000 active wallets facilitating over 700,000 transactions, demonstrating the remarkable resilience within the Shibarium community. Shibarium bridge token withdrawals are now fully operational after initial software errors caused temporary disruptions. The relaunch was achieved through the joint efforts of Shiba Inu, Polygon, Unification and other key players.
While nearly 100,000 transactions took place on August 31, peaking at 132,000 on August 25, the total locked value (TVL) is at Shibarium currently stands at a modest $1.26 million. Starting today, investors can use tokens such as SHIB, BONE, and others on Shibarium for various activities, including token trading, borrowing and lending, and deploying tokens to earn rewards.
Read more: Shiba Inu Price Prediction 2023 – 2025: Will Shiba Inu Turn Bullish In 2023 As Shibarium Launches?
Low TVL: why? And what are the implications?
One pressing question arises: Why does Shibarium’s TVL remain relatively low, comprising less than 1% of the total TVL within the broader crypto ecosystem, despite its high transaction activity and widespread user adoption? The likely explanation lies in the fact that users are committing relatively small amounts of capital to this Layer-2 network, accounting for less than 1% of the total locked value across various blockchain networks in the crypto ecosystem.
SHIB’s understated presence
In addition, data shows that SHIB’s inflow was 29.25 million, suggesting a “buy the rumor, sell the news” scenario surrounding the launch of Shibarium. In a separate move, an unidentified SHIB whale shifted nearly $38 million worth of tokens, starting with $160,000 worth of SHIB and then transferring $37.4 million to a new Ethereum wallet.
The impending impact of Shibarium on the Shiba Inu ecosystem, especially on tokens like SHIB and BONE, remains an intriguing topic. Will this provide a significant boost or potentially increase existing challenges?
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