Shibarium is making waves in the DeFi industry. Data from DeFiLlama shows that Shibarium’s DeFi TVL has soared to $3.76 million, marking its highest level in 30 days.
This metric has surged by 20% in the last five days, underscoring the rising usage of the protocols created on the network. In the last week, the top five largest decentralized exchanges (DEXs) created on Shibarium have seen their TVL surge by double-digit percentages.
The rising TVL could spell gains for Shiba Inu (SHIB) due to the token’s rising utility. Going by past trends, SHIB tends to gain whenever Shibarium records growth in its TVL.
For instance, in late September, after Shibarium’s TVL surged nearly threefold within days, it fuelled a 33% rally for SHIB.
A look at Shiba Inu’s technical indicators suggests that a mega bull run could also be underway, potentially taking SHIB higher.
Shiba Inu Forms a Golden Cross
Shiba Inu traded at $0.00002515 at press time after a slight 1.4% gain in 24 hours. The meme coin appears to have formed a golden cross on its 4-hour chart. This crossover usually shows that the short-term trend is gaining strength compared to the long-term trend, which paves the way for further price gains.
This golden cross could be the fuel that SHIB needs to flip resistance at $0.0000194. SHIB’s uptrend has been rejected at this resistance level several times, and reduced buying volumes have prevented a strong breakout above this level.
The Relative Strength Index (RSI) shows that buying activity is gaining momentum. At the time of writing, it was at 58, which shows that the buying pressure was higher than the selling pressure.
If buyers step in due to the bullish sentiment seen in the Simple Moving Averages (SMAs), SHIB will likely rally higher.
Shiba Inu’s burn rate soars
Another catalyst that could fuel SHIB gains is the burn rate. Data from Shibburn shows that in just 24 hours, more than 38 million SHIB tokens were removed from the circulating supply, a 790% increase from the previous day.
SHIB conducts regular token burns, with the burn rate tending to increase whenever network usage is at its peak. Given the rising DeFi activity on the Shibarium network, the burn rate could skyrocket, further boosting SHIB’s gains.