• Shibarium hit milestones in TVL and block production recently.
• SHIB showed bullish signs as the burn rate picked up.

Shibarium has recently made headlines by surpassing 8 million blocks, coupled with a significant spike in Total Value Locked (TVL).

As Shiba Inu [SHIB] enthusiasts celebrate this milestone, the relationship between TVL, token burns, and price trends becomes a key point of analysis.

Could the surge in TVL drive further price recovery for SHIB, or is the burn rate insufficient to impact market sentiment?

Shibarium TVL sets new records

Shibarium’s TVL has experienced a substantial uptick, moving closer to $5 million, as per data from DeFiLlama. As of this writing, the TVL was $4.72 million, its highest in history.

This increase reflected rising investor confidence and expanding use cases within the Shiba Inu ecosystem.

Historically, higher TVL correlates with improved liquidity and network activity, providing a positive backdrop for token valuation.

Comparing the growth trajectory, the Shiba Inu Layer 2 (L2) surpassed previous benchmarks earlier this year, signaling enhanced network adoption.

The influx of liquidity coincided with increasing transaction volumes.

Additionally, AMBCrypto’s analysis of the network data revealed a significant surge in active accounts, climbing from 2,284 to 12,041—a 427% increase.

This growth was driven by the increase in new accounts, with analysis showing a growth from 104 to 5,083, representing over 4,000% growth rate.

Shiba Inu’s burn rate shows progress

The Shiba Inu burn mechanism, an integral ecosystem component, aims to reduce token supply and increase scarcity. Data from Shibburn indicated that over 1 billion tokens were burned in the past month.

Also, in the last 24 hours, over 171 million had been burned, representing an over 4,000% increase. 

However, while the burn rate has shown incremental growth, it needs to match the scale of SHIB’s circulating supply.

Also, there was an inverse correlation between token burns and market price. So, the burn mechanism’s impact remained marginal without factors such as increased demand or broader market momentum.

How SHIB has trended

SHIB’s price has demonstrated resilience, climbing over 7% in the last 24 hours to $0.00002726. The daily chart highlighted a bullish trend, supported by the MACD and RSI indicators.

The RSI was 67 at press time, edging closer to the overbought zone, signaling potential consolidation in the short term.

Moving averages indicated strong support at $0.00002009, with the 200-day MA acting as a key long-term resistance level. The Bollinger Bands reveal expanding volatility, consistent with the recent price surge.

While Shibarium’s TVL growth has created a favorable macro environment, the price action showed that SHIB still faced a significant resistance at $0.00003500, a level it must break to sustain its upward momentum.

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The convergence of Shibarium’s rising TVL, Shiba Inu’s token burn activity, and market recovery painted a cautiously optimistic picture for SHIB.

However, the impact of burns on price remained limited without substantial demand-side catalysts.

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