Shibarium TVL Plummets 74% Amid DeFi Slowdown

Shibarium, the Layer-2 blockchain developed by Shiba Inu, has seen a significant decline in DeFi activity over the past 48 hours. Its total value locked (TVL) plummeted 74% from $121,860 to $31,277, before recovering slightly to $31,513.

This decline is puzzling, given that SHIB and BONE have rallied in recent days, with SHIB reaching a multi-month high of $0.000006191 and BONE climbing to $0.058. However, the TVL drop cannot be easily attributed to weakness in these tokens, as they have maintained some of their recent gains.

The network's decentralized exchange (DEX) activity has also deteriorated, with zero DEX trading volume recorded over the past three days and just $9.56 in DEX volume over the past seven days - an 85% decline from the previous week.