Shibarium Sees 500% Surge in Wallets—What It Means for SHIB

Shiba Inu’s Layer-2 network, Shibarium, has seen an unexpected surge in wallet addresses. Over the past week, the number of wallets skyrocketed by more than 490%, rising from approximately 9.4 million on February 17 to over 55.7 million by February 24. This sudden growth has raised questions, especially since other key network metrics have remained stagnant.

Transactions and TVL Remain Low

Despite the surge in wallets, transaction activity on Shibarium has declined sharply. Over the past week, new transactions dropped by over 90%, falling from more than 4 million to roughly 50,000. Additionally, Shibarium’s total value locked (TVL) has remained flat at around $2 million. Since December 2024, TVL has struggled, declining from over $6 million.

The increase in Shibarium wallet addresses seems to be tied to Chiikawa (CHIKA), a memecoin inspired by the anime of the same name. Notably, the number of CHIKA holders has grown alongside Shibarium wallets, reaching approximately 54.4 million.

CHIKA was launched by WOOF, a decentralized exchange on Shibarium, with the goal of onboarding more users. On February 16, the project posted on X, stating that its contract aimed to bring 160 million holders to Shibarium.

This is an introduction to the innovative contract:

Aims to add 160 million holders to Shibariumhttps://t.co/MUNBvbAJPo

Welcome to join the test!#Shibarium #ShibariumMemecoin pic.twitter.com/dFJB5lw11W
— WOOF | ve33 DEX on Shibarium🎀 (@woofswap) February 16, 2025

Unique Minting Mechanism Drives Engagement

Unlike most memecoins, CHIKA allows anyone to create a wallet and mint up to 1 billion tokens. However, what makes it stand out is its distribution model. Every time a user mints tokens, 20% of the amount gets randomly airdropped to 160 other wallets.

This mechanism has likely contributed to the rapid increase in new wallet addresses. Although this wallet growth has not directly impacted the price of Shibarium ecosystem tokens like SHIB, the influx of users could benefit the network in the long run.

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Increased participation and engagement might strengthen the ecosystem, potentially leading to future growth opportunities.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.