On December 1, the TVL of Shibarium, the Layer 2 solution for Shiba Inu, reached a new high of $10.22 million amid increased ecosystem activity and an upcoming hard fork.
According to DeFi Llama, the project’s total value locked reached an all-time high of $9.9 million. A week earlier, this figure was around $8.5 million.
In mid-September, the network set a previous growth record, with Shibarium’s TVL rising from $1.1 million at the start of the month to a record $7.2 million by September 30.
At the time of writing, the figure stands at $9.79 million.
Growth Factors
According to the team, the increase in the network’s total value locked is linked to an influx of liquidity from several DeFi protocols within the ecosystem.
Four platforms played the most significant roles:
- K9 Finance DAO ($4.35 million) — a protocol for liquid staking. It grew by 11.94% over the week and 52.21% over the last month;
- ShibaSwap ($3.94 million) — Shiba Inu’s native decentralized exchange (DEX). Weekly growth was 14.67%, and monthly growth was 77.57%;
- WoofSwap ($1.15 million) — an L2-DEX on Shibarium. It increased by 14.43% over the week and 74.62% over the month;
- ChewySwap ($609,829) — another decentralized exchange in the Shiba Inu ecosystem. The platform added 13.94% over the last week and 69.21% over the month.
A key factor driving increased activity in the ecosystem was identified as the Shibarium network hard fork, scheduled for December 2–3.
Developers intend to implement several updates to optimize the network and speed up transaction processing.
“As the ecosystem continues to expand, this update is crucial for meeting future demand while maintaining high performance standards,” the team stated.
Validators and application developers were reminded of the need to update their software and promised to provide necessary instructions.
Shibarium Metrics for November
The team reported on the platform’s key achievements in the month leading up to the record.
The number of accounts grew by 12.97% — from 180,017 on November 2 to 203,266 on December 2.
Total transactions increased by 30.21% — 587.7 million compared to 451.3 million at the start of the month.
The number of verified smart contracts increased by 11.03% — from 4,073 to 4,522.
Shibarium’s Role in the Ecosystem
Shibarium is a Layer 2 solution on top of the Ethereum blockchain for scaling the Shiba Inu ecosystem. The project launched in August 2023 but faced significant technical challenges. After improvements, the network was relaunched on August 28.
Shibarium offers an alternative technological infrastructure with higher throughput and lower fees compared to Ethereum.
The solution uses the Proof-of-Participation (PoP) consensus algorithm — a modification of Proof-of-Stake, where validators are selected based on their past performance. Participants earn rating points for time spent in the network and each successfully added block. They lose points for low activity and dishonest actions.
According to the developers, by optimizing the network, speeding up transactions, and reducing fees, Shibarium aims to transform SHIB — the ecosystem’s main asset — from a meme into a utility token.
Previously, Galaxy Digital analysts predicted a liquidity flow of over $47 billion into Layer 2 solutions on Bitcoin by 2030.