Shibarium Total Value Locked Spikes
Shiba Inu’s Layer-2 blockchain, Shibarium, has recently experienced a surge in Total Value Locked (TVL), surpassing $1 million for the first time since September. This milestone coincides with an increase in the burn rate of SHIB tokens over the past week.
Currently, Shibarium’s TVL stands at $1.03 million, showing a slight decrease of 8.98% in the last 24 hours. Previously, it reached a high of $1.13 million on December 23.
Data from DeFilLama reveals that decentralized exchanges MARSWAP and ChewySwap contribute approximately $820,000 to Shibarium’s overall TVL.
Shiba Inu (SHIB) Burn Rate Surges
The expansion of the Shiba Inu ecosystem aligns with a significant spike in SHIB’s burn rate. Over the past week, the token’s burn rate has increased by 97%, resulting in over 17 billion SHIB tokens being withdrawn from circulation.
The burnt tokens now exceed 410 trillion SHIB, accounting for nearly half of Shiba Inu’s total supply. Token burns aim to reduce the circulating supply and potentially drive up prices due to scarcity.
Additionally, there has been a substantial decrease in SHIB available on exchanges as over 8 trillion tokens have been withdrawn since November, equivalent to $88 million. This withdrawal trend suggests investor reluctance to sell their tokens.
Hot Take: SHIB Price Increase Despite Burn Rate
Despite the high burn rate and exchange withdrawals, SHIB’s price has only increased by 33% over the past month. In comparison, Bonk Coin, based on Solana, surged by 373% during the same period. However, technical analyst Ali Martinez suggests that if Shiba Inu remains above the $0.0000103 support level, the next target for SHIB could be $0.0000140.
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