- The DEX platform for Shiba Inu (SHIB), ShibaSwap, has seen its total value locked (TVL) plummet.
- According to data gleaned from DeBank, ShibaSwap’s locked value fell by almost half to figures below $1.1 billion.
- The slump may be a result of investors pulling out near the end of the bonus period.
- ShibaSwap had previously reached a TVL of $2.2 billion, surpassing protocols like Venus and Synthetix.
The gains made by ShibaSwap have been nullified after the decentralized exchange lost nearly half of the total value locked that it had accumulated over the last few weeks. Down from previous highs of $2.2 billion, the TVL is a shadow of its former self after the massive decline.
Launched in July, the decentralized exchange had grown by leaps and bounds, gaining up to $2.2 billion in TVL. The launch also played a major role in making Shiba Inu the third-largest consumer of gas on the Ethereum network.
The Fall of Locked Volume on ShibaSwap
Things quickly went awry for ShibaSwap after its locked volume fell by almost half. According to information gleaned from DeBank, ShibaSwap’s volume fell to below $1.1 billion in a move that has left analysts stumped.
One potential reason for the sudden loss of volume may be speculators pulling out their funds as the bonus period of the top mine comes to a close.
The loss of volume leaves ShibaSwap in 18th place on the list of DeFi tokens, just above Balancer and below QuickSwap. Data obtained shows that the locked volume fell by a staggering 47.39%.
For DeFi projects, locked volume is an important metric which is used to measure the adoption levels of a project. A massive decline of this magnitude is thus very unhealthy for a DeFi project.
The Rise of ShibaSwap
ShibaSwap burst onto the scene to great acclaim, gaining over $2 billion within a week of its launch. This saw ShibaSwap shoot into 9th place among DeFi tokens, according to analytics from DeBank.
Within just a week of the decentralized exchange’s launch, it had soared past established protocols like Aave, Uniswap V3, and Synthetix. At its zenith, the number of 24-hour users stood above 9,000, while trade volume was just above $87 million.
ShibaSwap performs a host of functions for the Shiba Inu ecosystem, like providing liquidity to earn BONE, allowing users to stake tokens to earn returns. It provides users with the opportunity to exchange their Ethereum tokens and also provides a comprehensive avenue for users to track their portfolios within the ecosystem.
On The Flipside
- The rapid rise of ShibaSwap had been responsible for the increase in Ethereum gas prices.
- This placed it as the third-largest consumer of gas on the Ethereum network.
Tokens
Central to ShibaSwap are three tokens: SHIB, LEASH, and BONE. These tokens have all been adversely affected by the decline of locked volume, and their values have in turn taken a steep nosedive.
LEASH has fallen by 7.57% over the last 24 hours to trade at $1,537, and trading volumes sunk by a whopping 53%. Similarly, SHIB fell by 4.68% in 24 hours and is currently trading at $0.000006205. The asset has dropped by 84.01% since the all-time high that it set in May.
SHIB has a total supply of 1,000,000,000,000,000 and its current circulating supply stands at 394,796,000,000,000 SHIB.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.
