Shiba Inu’s newly launched layer-2 blockchain, the Shibarium network, has achieved a significant milestone in its short existence. Within weeks of its relaunch, the total number of wallets on the network has exceeded 1 million, indicating rapid adoption and interest among users. This article will explore the growth of the Shibarium network, its current challenges, and potential opportunities for further development.
Meteoric Rise of Shibarium
The Shibarium team proudly announced the achievement of surpassing 1 million wallets in a recent blog post. This milestone signifies the addition of approximately 900,000 wallets since Shibarium’s relaunch on August 28. Despite some technical difficulties during the network’s initial launch, the growth has been remarkable in such a short period.
Increasing Network Activity
According to data from the Shibarium blockchain explorer, there have been nearly 100,000 transactions on the network as of September 3. The peak activity of 132,000 transactions was recorded on August 25, demonstrating the heightened interest and engagement within the community. However, it is important to note that while network activity has surged, the total value locked (TVL) on the Shibarium network remains relatively low, standing at just $1.06 million.
The current TVL suggests that users are deploying only small amounts of capital on the Shibarium network. This disparity between network activity and locked value raises questions about the reasons behind users’ cautious approach. It is possible that users are still testing the network’s capabilities and exploring its features before committing larger amounts of capital.
Expansion Plans
Shibarium’s developers have acknowledged this limitation and are actively addressing it. They are collaborating with third-party bridges to allow users to bridge other tokens onto the new blockchain, thereby increasing the availability of assets for deployment. Furthermore, the team has announced plans to renounce the contract for its governance token Bone (BONE) and aims to add more validators to the network in the coming weeks. These initiatives indicate a commitment to scalability and further adoption of the Shibarium network.
Despite the significant growth of the network and the introduction of lending, borrowing, and staking options for SHIB, BONE, and LEASH tokens, the price action of these tokens has not met expectations. SHIB, in particular, has experienced a decline of over 20% since the botched launch on August 16, according to CoinGecko data. Similarly, BONE and LEASH have also witnessed losses within the same timeframe.
The rapid rise of the Shibarium network with over 1 million wallets marks a significant achievement for Shiba Inu. However, the current disparity between network activity and total value locked indicates that users are still cautious about deploying larger amounts of capital. Nevertheless, the ongoing efforts to collaborate with external bridges and expand the network’s validator base show promise for future growth. As the network matures, it remains to be seen whether the price performance of Shiba Inu ecosystem tokens will align with the increased adoption and utility of the Shibarium network.