Shibarium's DeFi Activity Plummets as TVL Crashes by 74%

Shibarium, the Layer-2 blockchain of Shiba Inu, has seen a sharp decline in DeFi activity over the past 48 hours. The total value locked (TVL) on Shibarium plummeted by 74% during this period.

According to DeFiLlama data, Shibarium's TVL stood at $121,860 as recently as August 26, but dropped to $31,277 the following day before recovering slightly to $31,513 in the hours leading up to press time. However, despite this modest recovery, Shibarium's TVL remains 74.14% below its level 48 hours earlier.

The decline in DeFi activity is not limited to TVL, as Shibarium's decentralized exchange (DEX) volume has also dropped significantly. Over the past three days, the network recorded $0 in DEX trading volume, and over the past seven days, it recorded just $9.56, representing an 85% decline from the previous week.

Interestingly, while Shibarium's DeFi activity is declining, Shiba Inu ecosystem tokens are benefiting from the broader crypto market recovery. $SHIB recently climbed to a multi-month high of $0.000006191, and BONE rallied to $0.058.