Shibarium, Shiba Inu’s layer-2 solution, recently reached an all-time high total value locked (TVL) of over $3.67 million. As if the current bullish sentiment around the Shiba Inu’s ecosystem isn’t enough, its layer-2 solution has now reached a milestone that could lead to a further price surge.
According to data from DeFiLlama, the total value locked on Shibarium jumped from $1.43 million on March 22 to $3.38 million on March 23, sparking optimism about SHIB’s price.
Shibarium TVL Surges To New Milestone
Shibarium’s total value locked hitting a new high shows the network effect in action. Interestingly, data shows Shibarium’s TVL has spent most of the year below $1 million before crossing over in late February. However, the TVL stands at $3.67 at the time of writing, revealing a positive change in the ecosystem.
The recent surge in TVL can be particularly attributed to the launch of the DAMN token on WoofSwap, which is a decentralized exchange built on the Shibarium. DAMN quickly gained attention as one of the hottest cryptocurrencies after its launch on March 18.
According to data from Shibariumscan, this frenzy led to a surge in the number of daily active users to 2,482 on the day of its launch. Similarly, WoofSwap’s TVL has grown by 8,988% in the past seven days.
Another catalyst for the surge in TVL was the launch of KNINE tokens, a liquid staking solution on the Shibarium blockchain.
What’s Next For Shiba Inu?
Naturally, Shibarium’s recent milestones have sparked optimism about SHIB’s price as the cryptocurrency is well known to react to updates about the layer-2 network. This growth shows that Shibarium is attracting more users, which could boost SHIB’s price.
Shibarium’s new milestone saw SHIB rallying 8.8% to $0.00002828 in less than 24 hours. This price rally highlights the close correlation between the growth of Shibarium and the SHIB price.
SHIB is trading at $0.00002806 at the time of writing. The cryptocurrency is in fact, still riding on the back of a 193% gain in the past 30 days despite being 37% down from its $0.00004456 earlier in the month.
On-chain metrics and investor sentiment point to a continued price surge in the near future. On-chain analytics platform Santiment recently pointed out that Bitcoin, along with SHIB and other meme coins, remained the focus of traders throughout the weekend. SHIB, which naturally has a strong price correlation with Bitcoin, could reignite a surge in tandem.
According to Lucie, Shiba Inu’s marketing lead, the price of SHIB could surge by 250% before the next Bitcoin halving which is slated to occur in April.
Featured image from Pexels, chart from TradingView