Shiba Inu (SHIB) is up over 10% to hit a two-month high with a market cap of $9.7 billion.
The recovery is in line with Shibarium's progress and a 640% increase in burn rate, reducing supply and generating optimism.
Rally do SHIB
The popular meme coin – Shiba Inu (SHIB) – is among the top performing cryptocurrencies today (September 26), with its price jumping over 10%. It is currently trading at a nearly two-month high of approximately $0.00001634 (according to data from CoinGecko). Its market cap has surged to $9.7 billion, a level last seen in late July.
SHIB Price, Source: CoinGecko
Shiba Inu has a vast community base consisting of holders and proponents. According to IntoTheBlock, around 50.3% of all SHIB investors are sitting on some paper profits at the moment, while 43% are underwater.
Interestingly, nearly 80% of holders joined the initiative more than a year ago. 19% did so in the last 12 months, while only 2% joined the ecosystem in the last 30 days.
SHIB’s resurgence coincides with a general revival of the entire meme coin niche, whose market cap is approaching $50 billion. Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), Bonk Inu (BONK), and many others are well into the green on a daily and weekly scale. On the other hand, Dogs (DOGS) and Neiro (NEIRO) are among the few that have witnessed some losses in the past 24 hours.
Taking a closer look
There are several bullish factors that could have contributed to SHIB’s latest price surge. One example is the advancement of the layer-2 scaling solution – Shibarium. As CryptoPotato reported, blocks processed on the network recently surpassed 7 million.
Next on the list is the SHIB burn rate, which has skyrocketed by 640% daily, resulting in approximately 5.5 million tokens being sent to a null address.
The ultimate goal of the mechanism is to reduce the circulating supply of the meme coin, potentially triggering a price rally through scarcity. Over the past few years, over 410 trillion tokens have been destroyed, leaving 583.5 trillion in circulation.
Some analysts believe that the price of SHIB could jump much higher in the near future. Examples include X-users JAVON MARKS and pepa. The former thinks that the coin could be gearing up for a spike towards $0.000081, while the latter has predicted a whopping 10,000% increase.
The second scenario is quite unlikely considering the fact that Shiba Inu's market cap is expected to explode to around $800 billion.
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