The slowdown in the Shiba Inu ecosystem has also extended to its layer two network, Shibarium, as participation across its spot and DeFi markets continues to hit low levels.
While its volatile price movements still persist, the latest data from DefiLlama shows that its DEX volume is heading towards zero as momentum remains bearish.
What’s behind the drop?
The data shows that the DEX volume of the Shibarium network has plunged significantly by 97.46% over the last week, as its decentralized exchange activity slows down.
This shows that trading activity across the Shibarium layer two network is sitting at just $1.81.
The decline has arrived amid a broader market downturn that has seen Shiba Inu consistently trade in the red, causing investors and traders to exercise caution across the broader ecosystem.
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While the decline follows weak market conditions, analysts predict that a strong recovery in the broader crypto market could drive renewed interest in SHIB.
When interest returns to the market, the layer two network could regain stronger user activity, which could help bring liquidity back to Shibarium.
Shibarium sees decent TVL growth
Despite the slowdown in the Shibarium DEX volume, the network has seen a modest increase of 0.13% in its total value locked (TVL), which is sitting at about $102,324, over the past 24 hours.
Among all decentralized exchanges operating on the network, WoofSwap Shibarium dominates, accounting for the largest share with about $86,018 in TVL after a 3.18% surge over the last day.
ShibaSwap, on the other hand, follows with about $6,893, while Shibex and DogSwap hold about $4,264 and $3,855, respectively.
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