Shibarium, Shiba Inu’s Layer-2 blockchain, has suffered a sharp decline in DeFi activity, with its total value locked (TVL) plunging 74% over the past 48 hours.
The decline comes as investors focus on the recent price gains across the Shiba Inu ecosystem. However, while SHIB and other ecosystem tokens attracted attention during the broader crypto market rally, Shibarium’s DeFi metrics moved in the opposite direction.
As recently as August 26, Shibarium’s TVL stood at $121,860, keeping it above the $100,000 threshold, according to DeFiLlama data. However, the metric plunged to $31,277 the following day before recovering slightly to $31,513 in the hours leading up to press time.
Despite this modest recovery, Shibarium’s TVL remains 74.14% below its level 48 hours earlier, highlighting the severity of the recent decline.
According to DeFiLlama, WoofSwap leads the network with $11,362 in locked assets. ShibaSwap follows with $8,179, while Shibex ranks third with $5,683. Together, the three protocols account for a substantial portion of the liquidity locked across Shibarium.
Shibarium DEX Volume Drops to Zero
Meanwhile, Shibarium’s decentralized exchange (DEX) activity has deteriorated alongside its TVL.
The network recorded $0 in DEX trading volume over the past three days, according to DeFiLlama data. Furthermore, Shibarium recorded just $9.56 in DEX volume over the past seven days, representing an 85% decline from the previous week.
Consequently, the weakness extends beyond TVL. The sharp drop in trading activity points to a broader slowdown in DeFi participation across the Layer-2 network.
SHIB and BONE Rally Despite Shibarium DeFi Slump
Interestingly, Shibarium’s declining DeFi activity comes as Shiba Inu ecosystem tokens benefit from the broader crypto market recovery.
SHIB recently climbed to a multi-month high of $0.000006191, while BONE rallied to $0.058. Although both tokens have since pulled back slightly from those highs, they have nevertheless maintained some of their recent gains, with SHIB currently priced at $0.000005396 and BONE at $0.05233.
Therefore, the recent decline in Shibarium’s TVL cannot easily be attributed to weakness in the broader Shiba Inu ecosystem. Moreover, the magnitude of the TVL drop appears too significant to result solely from the modest price pullback in SHIB and BONE. At press time, the precise reason for Shibarium’s sudden TVL collapse remained unclear.
Meanwhile, ShibariumScan is still indexing the blockchain following a major upgrade. At press time, the explorer showed that only 49% of the network’s blocks had been indexed. Consequently, total transactions, which stood at 1.56 billion before the incident, had fallen to 575.91 million, while the number of wallet addresses had dropped from around 269 million to 79.87 million.
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