Shiba Inu (SHIB) is up 23% in 24 hours, potentially driven by an explosion in its token burn rate (up 33,800%) and progress on its layer 2 solution, Shibarium.
Despite analysts’ predictions of significant price gains, achieving goals like eliminating two zeros from SHIB’s valuation would require a highly unlikely market cap of $800 billion.
Climbing the Crypto Ladder
Shiba Inu (SHIB) has been the best-performing cryptocurrency over the past 24 hours (out of the top 100 club), recording a 23% price increase. It is currently trading at approximately $0.00001895 (according to CoinGecko data), a level last seen in mid-July.
Its market cap has jumped to over $11 billion, making it the 14th largest in the entire cryptocurrency sector. The meme coin remains the second largest in its niche, behind only Dogecoin (DOGE), whose market cap is approaching $18 billion.
SHIB’s impressive resurgence coincides with an explosion in its burn mechanism. Data shows that the burn rate has spiked by 33,800% on a daily scale, resulting in nearly 2 billion tokens being sent to a void address.
The ultimate goal of the program is to reduce the tremendous circulating supply of Shiba Inu, potentially triggering a price increase (should demand remain the same or increase). The SHIB team and community have destroyed over 410 trillion tokens since the adoption of the mechanism, leaving around 583.5 trillion in circulation.
Another factor likely contributing to the asset’s rally is the progress of the layer-2 scaling solution – Shibarium. Recall that the network recently surpassed the 7 million milestone in terms of blocks processed, while the number of total transactions is just under 420 million.
It’s worth mentioning that SHIB isn’t the only meme coin recording significant gains today (September 27). The sector’s market cap is up 14% in the past 24 hours, currently set at approximately $54 billion.
Major meme stocks including Dogecoin (DOGE), Pepe (PEPE), Bonk Inu (BONK), Floki Inu (FLOKI), and many others have soared in double digits. On the other hand, PepeCoin (PEPECOIN), Tron Bull (BULL), and Toshi (TOSHI) are among the few that have witnessed some losses.
SHIB’s next potential target
One popular analyst who has predicted further gains for the meme coin is X user JAVON MARKS. The trader noticed “multiple confirmed bullish patterns” on its price chart, suggesting that it could be headed for a 315% jump to as high as $0.000081.
Not long ago, user X pepa outlined an even more optimistic prediction, claiming that SHIB could erase two zeros from its valuation in the near future. However, this would require its market cap to explode to nearly $800 billion, making the prediction quite unlikely.
The post Is This Why Shiba Inu (SHIB) Price Is Up 23% Daily? (Details) appeared first on CryptoPotato.
