These indicators indicate that Shiba Inu (SHIB) prices are set to rally

Shiba Inu's layer-2 blockchain Shibarium has recently seen an increase in Total Value Locked (TVL). It exceeded 1 million dollars for the first time since September.

This chapter coincides with the massive increase in SHIB tokens burned over the past week.

The total value of the Shibarium is locked spikes

Shibarium's TVL dropped slightly to $1.03 million, representing a decrease of 8.98% in the last 24 hours. This follows a high of $1.13 million on December 23.

On-chain data from DeFilLama shows that most of the total value locked on the Shibarium network comes from decentralized exchanges. MARSWAP and ChewySwap account for approximately $820,000 of the total TVL sold at Chibarium.

Moreover, the Layer-2 blockchain showed the growth of transactions throughout December. The network has averaged around 7 million daily transactions and has grown from 2.2 million blocks to 177 million in total. These numbers reflect Shibarium's growth and adoption since its initial launch in August ironed out problems.

Shiba Inu (SHIB) burning speed increase

Similarly, the expansion of the Shiba Inu ecosystem coincides with a dramatic increase in SHIB burn rates. Last week, a staggering 97 percent increase in the token's burn volume resulted in over 17 billion SHIB tokens being withdrawn from circulation.

Tokens burned exceeded 410 trillion SHIB, accounting for almost half of the total supply of Shiba Innu. Token Burs typically aim to reduce coin circulation. A decrease in supply could theoretically lead to a shortage, which could drive up prices if demand is constant.

As the total number of tokens in circulation decreases, the SHIB available on exchanges decreases significantly. On-chain data shows that more than 8 trillion SHIB have been withdrawn from known crypto exchanges since November, equivalent to $88 million. Typically, such transfers away from the exchange are seen as bullish, indicating investors' reluctance to sell their tokens.

SHIB's share price has risen 33 percent in the past month despite high burn rates and currency outflows. For comparison, Solana-based Bonk coin has increased by 373% during the same period. Still, if Shiba Inu continues to trade above the $0.0000103 support level, technical analyst Ali Martinez said, “SHIB's next stop could be $0.0000140.”