Shiba Inu fever continues to burn, with the project’s layer-2 network, Shibarium, reaching a new peak in total value locked (TVL). This milestone coincides with a recent price surge for both Shiba Inu (SHIB) and its ecosystem token, Bone ShibaSwap (BONE).
Shibarium Hits New High, But Price Volatility Looms
Data from DeFiLlama shows Shibarium’s TVL skyrocketed to an impressive $2.25 million on March 5th. This translates to a significant 60% increase from the previous record set during Shibarium’s launch in August 2023. However, a price correction for SHIB quickly followed, leading to a decline in Shibarium’s TVL. As of now, the value sits around $1.76 million, highlighting the network’s vulnerability to price fluctuations.
DEXs Dominate Shibarium’s Landscape
A closer look reveals that decentralized exchanges (DEXs) are the primary drivers of Shibarium’s locked capital. Marswap and Chewyswap currently reign supreme, boasting $994,000 and $518,000 in TVL respectively. This dominance suggests investors are primarily utilizing Shibarium for token swaps.
Price Pumps Fuel TVL Surge
The recent TVL milestone undeniably correlates with the price performance of SHIB and BONE. When Shibarium reached its peak, SHIB and BONE enjoyed significant gains within a week, with prices rising 26% and 28% respectively. This price appreciation likely enticed investors to leverage Shibarium’s offerings, contributing to the TVL surge.
Despite the recent price dip, Shibarium’s all-time high TVL underscores its potential. Designed for faster transactions and lower fees, Shibarium offers a compelling alternative to expensive networks like Ethereum. While it may not yet compete with established L2 solutions in terms of user base and capital, Shibarium’s growth is undeniable. Notably, the network surpassed a remarkable 400 million transactions just seven months after launch.
Billions on the Horizon?
Kaal Dhairya, a leading Shibarium developer, has hinted at ambitious plans for the network. The ultimate goal, he suggests, is to onboard billions of new users into the crypto space, with the Shiba Inu community leading the charge. The recent surge in transactions and TVL suggests Shibarium is well on its way to achieving this ambitious mission.
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