Shiba Inu (SHIB)'s sharp rise over the past 24 hours has helped it reach a new milestone. This increase coincided with the meme coin wave, with many other assets seeing significant price increases.

SHIB Boom

The meme coin sector has been making waves in the past few hours, with market capitalization surpassing the $70 billion mark. Many tokens in this space are among the best performing assets on the market today (May 29), recording double-digit price increases.

Shiba Inu (SHIB) is a notable example, up more than 16% in 24 hours. The self-proclaimed Dogecoin-killer's market capitalization briefly hit $17 billion before stabilizing at its current level of around $16.9 billion (according to CoinGecko data). Thus, it overthrew Cardano (ADA) and became the 11th largest cryptocurrency.

Despite the presence of many other memes, SHIB is still the second largest meme coin, behind Dogecoin (DOGE), with a market capitalization of over 24 billion USD.

The Shiba Inu's latest spike coincides with an increase in several key metrics related to its ecosystem. Trading volume over the past 24 hours has increased to nearly $1.9 billion, outperforming DOGE ($1.2 billion), PEPE ($1.3 billion), and all other meme coins.

SHIB's total daily volume (where each transaction exceeds $100,000) reached $214 million, up 135% from the figure observed on May 28.

According to IntoTheBlock, 70% of Shiba Inu holders achieved paper profits. The situation was much different last September when nearly 90% of those who came into contact with the property were underwater.

Potential factors

Two essential factors that may have impacted the most recent recovery of the Shiba Inu are the project's combustion mechanism and the advancement of the layer 2 expansion solution – Shibarium.

The burn rate exploded by nearly 600% last week, removing nearly 10 million tokens from circulation. The ultimate goal of the program is to reduce the huge circulating supply of SHIB, making it more scarce and potentially more valuable over time (assuming demand stays the same or increases). To date, the SHIB group has sent about 41% of the total supply to a null address.

Shibarium, which aims to elevate Shiba Inu above rivals by reducing transaction fees and improving speed, has made great strides since launching last summer. It has passed many important milestones, such as surpassing the 400 million mark in terms of total transactions.

It also underwent two major upgrades to improve user experience, empower the developer and innovator community, and implement faster block processing times.