There is a visible trend being displayed by Shibarium, the Ethereum-based Layer-2 scaling solution, as concerns its decentralized finance (DeFi) ecosystem. Data from DeFiLlama shows an extended consolidation phase for the protocol’s total value locked (TVL), which is pegged at $542,369 at the time of writing.
The TVL is the metric tlused to define relative growth by virtue of locked funds in the respective decentralized applications (dApps) hosted on the protocol. Notably, since the rebirth of Shibarium, the TVL has dropped from its peak of $1.47 million and has been ranging from $520,000 to $699,500 since then.
Three factors to break stalemate
It is not uncommon for consolidation to drag longer than usual in the digital currency ecosystem; however, factors that can break this stalemate are wide-ranging. For Shibarium, it will need to learn from other established protocols that set up dedicated funding to boost developers that can create smart contracts that are usable.
As it stands, Shibarium already boasts usable products, including MARSWAP, ChewySwap and DogSwap, the trio of which dominates the TVL count. With funding to entice developers, these protocols can scale and drive more people into Shibarium.
Additionally, the core Shibarium team will need to make good on their promises with respect to key events that are being envisaged. From security to the promised Burn Portal, meeting crucial milestones can keep the faith and further help drive Shibarium to the frontlines among its peers.
The third factor that can turn Shibarium’s fortunes around is to capitalize on partnerships. Rather than competing unduly, it can learn from other Layer-2 scaling protocols with active partnerships with industry giants to better bolster its services.
Shibarium advantage
Shibarium has very solid publicity owing to the Shiba Inu influencer, but it needs to capitalize on its volatility and recurrent milestones to attract more capital overall. Additionally, boosting diversity beyond the normal DEXes on the platform can also accelerate growth across the board.
