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What’s next for SHIB price after Shibarium TVL nosedives?

What’s next for SHIB price after Shibarium TVL nosedives?

It has been a turbulent month for the Shibarium network, a layer-2 blockchain aiming to scale the Ethereum (ETH) ecosystem, while connecting it to the popularity of Shiba Inu (SHIB) and the passion of the ShibArmy, by creating its own DeFi space with decentralized protocols.

In this context, both related tokens are going through high volatility in the crypto market, as sentiment and data about Shibarium keep changing. These two tokens are SHIB and BONE — which is the native token for the decentralized exchange (DEX) ShibaSwap, and now the native token for the Shibarium network.

Is the market bearish or bullish on Shibarium?

According to data retrieved by Finbold from DefiLlama, Shibarium’s total value locked (TVL) has dipped from $1.47 million on August 29, to $591,812 at the time of publication, on September 20. Losing 59% of the capital allocated to its DeFi ecosystem.

Shibarium total value locked (TVL).
Shibarium total value locked (TVL). Source: DefiLlama

The above data suggests a bearish sentiment in general for DeFi investors in the given layer-2 blockchain.

However, the TVL has slightly recovered in the last 24 hours, for short-term gains of 3.87%. DogSwap, the dominant protocol, is responsible for $213,194 (36%) of the total value locked on Shibarium.

Interestingly, Finbold also reported that the network is seeing an average of over 36,000 new addresses every day, since its launch. There is a total of 1,246,846 crypto wallets using Shibarium, which could suggest a bullish sentiment for the users, as a counterpoint to TVL data.

SHIB price analysis

Meanwhile, Shiba Inu (SHIB) has been consolidating in the last few days, trading at $0.0000073 by press time, after registering accumulated losses of 6% in the last 30 days.

SHIB 1-month price chart.
SHIB 1-month price chart. Source: Finbold

ShibaSwap (BONE) is showing a similar pattern in the monthly chart, currently changing hands by $0.80 per token.

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