On December 1, Shibarium, the Layer-2 scaling solution for Shiba Inu, reached a new all-time high in Total Value Locked (TVL) at $10.22 million. The record comes amid increased activity within the ecosystem and anticipation of an upcoming hard fork.
According to DeFi Llama, the network’s TVL surged to a historic $9.9 million earlier in the week, up from $8.5 million the week before. Previously, in mid-September, Shibarium’s TVL climbed from $1.1 million at the start of the month to $7.2 million by September 30.
As of now, TVL stands at $9.79 million.
Key Drivers Behind the Growth
The surge in Shibarium’s TVL is largely attributed to liquidity inflows from several DeFi protocols within its ecosystem.
The top contributors include:
- K9 Finance DAO ($4.35 million): A liquid staking protocol with a weekly growth of 11.94% and a monthly increase of 52.21%.
- ShibaSwap ($3.94 million): Shiba Inu’s native decentralized exchange (DEX) experienced a 14.67% growth this week and a 77.57% rise in the past month.
- WoofSwap ($1.15 million): A Layer-2 DEX on Shibarium, which grew by 14.43% over the week and 74.62% over the month.
- ChewySwap ($609,829): Another DEX in the Shiba Inu ecosystem, up 13.94% weekly and 69.21% monthly.
Upcoming Hard Fork
A significant driver of activity is the network’s planned hard fork, set to take place between December 2 and 3.
Developers aim to implement optimizations to enhance transaction speeds and network efficiency.
“As the ecosystem continues to grow, this upgrade is critical for meeting future demand while maintaining high performance standards,” the team stated.
Validators and app developers were reminded to update their software, with detailed instructions to follow.
November Metrics
The Shibarium team shared key metrics for November ahead of its record-breaking TVL:
- Accounts: Grew by 12.97%, from 180,017 on November 2 to 203,266 by December 2.
- Total Transactions: Increased by 30.21%, from 451.3 million to 587.7 million.
- Verified Smart Contracts: Rose by 11.03%, from 4,073 to 4,522.
Place for photos after each metric
Shibarium’s Role in the Ecosystem
Shibarium is a Layer-2 solution built on Ethereum to scale the Shiba Inu ecosystem. Launched in August 2023, the network faced initial technical issues but was successfully relaunched on August 28.
The solution offers higher throughput and lower fees compared to Ethereum, using a Proof-of-Participation (PoP) consensus algorithm. Validators are selected based on their past contributions, earning reputation points for time spent in the network and successfully added blocks, while penalized for low activity or misconduct.
By optimizing the network and reducing fees, Shibarium aims to transform SHIB from a meme token into a utility asset, supporting its broader adoption.
Broader Implications
Earlier, Galaxy Digital analysts predicted that Layer-2 solutions on Bitcoin could attract over $47 billion in liquidity by 2030.