Shiba Inu’s Shibarium TVL Plunges 74% in 48 Hours as DeFi Activity Falls
Shibarium, Shiba Inu’s Layer-2 blockchain, has recorded a sharp decline in decentralized finance (DeFi) activity, with its total value locked (TVL) falling 74% in the past 48 hours.
The drop comes as investors turn their attention to recent price gains across the Shiba Inu ecosystem. While $SHIB and other ecosystem tokens attracted interest during the broader cryptocurrency market rally, Shibarium’s DeFi metrics moved in the opposite direction.
Shibarium TVL Falls 74%
According to DeFiLlama data, Shibarium’s TVL stood at $121,860 as recently as August 26, keeping the network above the $100,000 threshold. However, TVL dropped to $31,277 the following day before recovering slightly to $31,513 in the hours leading up to press time.
Despite the modest recovery, Shibarium’s TVL remained 74.14% below its level 48 hours earlier, underscoring the severity of the decline.
WoofSwap leads Shibarium’s protocols with $11,362 in locked assets, according to DeFiLlama. ShibaSwap follows with $8,179, while Shibex ranks third with $5,683. Combined, the three protocols represent a substantial share of the liquidity locked across the Layer-2 network.
Shibarium DEX Trading Volume Drops to Zero
Shibarium’s decentralized exchange (DEX) activity has also deteriorated alongside its TVL.
The network recorded $0 in DEX trading volume over the past three days, DeFiLlama data showed. Over the past seven days, Shibarium recorded just $9.56 in DEX volume, an 85% decline from the previous week.
The weakness therefore extends beyond TVL. The steep fall in trading activity points to a broader slowdown in DeFi participation across Shibarium.
$SHIB and BONE Rally Despite Shibarium DeFi Slump
Shibarium’s declining DeFi activity comes as Shiba Inu ecosystem tokens benefit from the broader recovery in the cryptocurrency market.
$SHIB recently climbed to a multi-month high of $0.000006191, while BONE rallied to $0.058. Both tokens have since pulled back slightly from those highs but have retained some of their recent gains. At press time, $SHIB was priced at $0.000005396 and BONE at $0.05233.
As a result, the recent decline in Shibarium’s TVL cannot easily be attributed to weakness across the broader Shiba Inu ecosystem. The scale of the TVL drop also appears too large to have resulted solely from the modest pullback in $SHIB and BONE. At press time, the precise reason for Shibarium’s sudden TVL collapse remained unclear.
Meanwhile, ShibariumScan was still indexing the blockchain following a major upgrade. At press time, the explorer showed that only 49% of the network’s blocks had been indexed. Consequently, total transactions, which stood at 1.56 billion before the incident, had fallen to 575.91 million, while the number of wallet addresses had dropped from around 269 million to 79.87 million.
No Comments