- Shiba Inu price is yet to catch up with the rising on-chain activity on Layer 2 chain Shibarium.
- The total value of assets locked on Shiba Inu’s scaling solution is lagging behind, while a million SHIB wallets engage with Shibarium’s bridge.
- SHIB price has yielded 4% losses for holders over the past week.
Shiba Inu price is struggling to catch up with the activity on its Layer 2 chain Shibarium. After a botched launch of the scaling solution Shibarium, there has been a lag in the total value of assets locked (TVL) on the chain.
At the time of writing, TVL is $1.04 million, down from $1.27 million on August 28, based on data from DeFiLlama.
Shiba Inu price and TVL lag behind wallet activity on Shibarium
Shibarium was first launched on August 17. The launch turned out to be botched, with nearly $2 million in Ethereum and BONE locked on the Shibarium bridge. The team worked on scaling the Layer 2 chain with the help of Unification and Polygon and relaunched Shibarium on August 28.
Post the relaunch, there has been a rise in wallets interacting with the Shibarium bridge. Based on data from Shibariumscan.io, daily transactions have climbed to 99,060 as of September 3.
Daily transactions on Shibarium
Nearly a million wallets have interacted with Shibarium’s bridge, marking a key milestone in the Layer 2 chain’s journey. Despite these bullish statistics, TVL and SHIB price have failed to catch up.
As seen in the chart below, TVL is $1.04 million, having declined consistently since the beginning of September. TVL is a key metric since it represents the volume of assets that traders lock in the chain.
It is likely that the botched launch of Shibarium and the general rug pull and pump and dump concerns surrounding meme coins like PEPE have dampened the sentiment among the SHIB community of holders.
Traders in the Shiba Inu ecosystem are reluctant to engage with the SHIB bridge, resulting in the likely TVL decline.
TVL of SHIB as seen on DeFiLlama
SHIB price is $0.00000770 at the time of writing, up 0.13% on the day. Over the past week, SHIB price declined 4.35%.