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Shiba Inu: Nearly 500k wallets have Shibarium on lock

Since introducing its Layer 2 (L2) ecosystem, Shibarium Shiba Inu (SHIB) has achieved significant milestones. As reported by the Shibarium explorer, the number of addresses using this L2 has reached 447,076. Despite a slow start with few transactions recorded on the 23rd of August, the daily transactions surged to 68,402 by August 30, bringing the total trades on the Shibarium network to 617,492.

This growth in wallet usage underscores the adoption success of the Shiba Inu ecosystem. The Shibarium L2 was developed by the Shiba Inu team, aiming to create a system backed by SHIB tokens and built on the Ethereum (ETH) blockchain. While Shibarium was initially met with enthusiasm, there was a period when it struggled to gain traction within the SHIB community. Notably, the spike in addresses and transactions positively impacted Shibarium’s Total Value Locked (TVL), which reached $1.42 million, aided by protocols like DogSwap. The TVL metric reflects the number of unique deposits into a protocol; its rise signifies robust liquid input, while a decline points to decreased network activity.

Despite DogSwap’s 11.39% increase in the last 24 hours, other Decentralized Exchanges (DEXs) like Shibex, LeetSwap, and Woof Finance experienced a dip. The Shibarium’s debut seemingly followed a “buy the rumor, sell the news” pattern, evident from the exchange input and outflow dynamics. On-chain data showed SHIB’s exchange inflow at 29.25 million, which measures the transfer of tokens from non-exchange to exchange wallets. Conversely, the exchange outflow, indicating token transfers from exchange to non-exchange wallets, was considerably lower at 2.08 million. This discrepancy of 20 million between inflow and outflow suggests a bearish stance for Shiba Inu. If the flow doesn’t align with the influx soon, SHIB might require further correction.

Interestingly, data from Santiment revealed an uptick in the number of SHIB tokens transacted between August 30 and 31. Approximately 7.88 trillion tokens were involved in these transactions, showing a shift from Shiba Inu’s previously dormant state. The Market Value to Realized Value (MVRV) Z score, which measures the difference between an asset’s market and realized cap, stood at -3.43. While high Z scores usually suggest overvaluation, SHIB’s negative MVRV Z score indicates potential undervaluation, offering a possible buying opportunity at its prevailing price.

 

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