The memecoin space has been making waves over the past few hours, with its market capitalization crossing the $70 billion mark. Many of these assets were among the market's best performers today (May 29), with double-digit price gains.
Shiba Inu (SHIB) is a notable example, rising more than 16% in 24 hours. The self-proclaimed Dogecoin-killer cryptocurrency’s market capitalization briefly touched $17 billion before settling at its current level of around $16.9 billion (according to data from CoinGecko). As a result, it surpassed Cardano (ADA) to become the 11th largest cryptocurrency.
Despite SHIB's price surge, it remains the second-largest meme coin, behind Dogecoin (DOGE), which has a market capitalization of over $24 billion.
Shiba Inu's latest spike coincides with a rise in some important metrics related to its ecosystem. Trading volume has surged to nearly $1.9 billion in the past 24 hours, surpassing DOGE ($1.2 billion), PEPE ($1.3 billion), and every other meme token in the space.
SHIB’s total daily trading volume (over $100,000 per trade) reached $214 million, a 135% increase compared to May 28 figures.
According to IntoTheBlock, 70% of Shiba Inu holders are currently holding paper profits. It was a much different story last September, when almost 90% of those holding the asset were in the red.
Two important factors that may have influenced the recent Shiba Inu resurgence are the advancement of the project's combustion mechanics and its Tier 2 scaling solution, Shibarium.
According to CryptoPotato, the burn rate jumped by nearly 600% a week ago, resulting in nearly 10 million tokens being destroyed. The ultimate goal of the plan is to reduce the large circulating supply of meme coins, making them more scarce and potentially more valuable over time (assuming demand remains the same or rises). The SHIB team has sent approximately 41% of the total supply to empty addresses to date.
Shibarium aims to give Shiba Inu an edge over competitors by lowering transaction fees and increasing speed, and it's come a long way since its launch last summer. It passed several milestones, such as the total transaction volume crossing the 400 million mark.
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