Shiba Inu: SHIB TVL breaks the $1 million mark

Shibarium, Shiba Inu’s layer 2 blockchain, has recently seen a spike in Total Value Locks (TVL). Indeed, it topped a million dollars for the first time since September.

This move corresponds to the significant increase in SHIB token burning rate seen over the past week.

Shibarium TVL Skyrockets

Shibarium’s TVL is down slightly to $1.03 million, representing a 8.98% decrease in the last 24 hours. This drop comes after a high of $1.13 million was reached on December 23rd.

On-chain data from DeFilLam shows that most of the total value locked in the Shibarium network comes from decentralized exchanges. MARSWAP and ChewySwap in particular account for approximately $820,000 of the total TVL network.

Shibarium layer 2
Shibari statistics. Source: Shibariumscan

Additionally, the Layer 2 blockchain saw a spike in transactions during December. The network saw an average of around 7 million transactions per day, bringing the total to 177 million from 2.2 million blocks. These numbers reflect the growth and adoption of Shibarium since it finally resolved its initial launch issues in August.

For the next : How to buy a Shiba Inu?

Increase in SHIB combustion

The expansion of the Shiba Inu ecosystem coincides with a remarkable increase in SHIB burn rates. Over the past week, a staggering 97% increase in token burn rate has resulted in more than 17 billion SHIB being withdrawn from circulation.

Tokens burned exceeded 410 trillion SHIB, representing almost half of the total supply of meme coins. Token burning generally aims to reduce the circulating supply of a coin. A decrease in supply can theoretically lead to a shortage and potentially increase the price if demand for the asset remains constant.

The decrease in the total number of tokens in circulation has led to a substantial decrease in the number of SHIBs available on crypto exchanges. On-chain data shows that more than 8 trillion SHIB, equivalent to $88 million USD, have been withdrawn from well-known industry exchanges since November. In general, such transfers from exchanges are considered bullish signals, indicating investors’ reluctance to sell their tokens.

Shiba Inu Libra on the stock exchanges
Shiba Inu balance on exchanges. Source: Glassnode

This means that despite a high burn rate and withdrawals from exchanges, SHIB’s price has only increased by 33% in the last month. By comparison, Solana-based Bonk Coin is up 373% over the same period. However, technical analyst Ali Martinez said that if Shiba Inu continues to trade above its $0.0000103 support, “the next stop for SHIB could be at $0.0000140.”

Moral of the story: The road to SHIB is long and winding.

Disclaimer

Disclaimer: In accordance with The Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, readers are encouraged to check the facts for themselves and seek professional advice before making any decisions based on this content.

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