Is this why the price of Shiba Inu (SHIB) soared 23% daily? (Details)

TL;DR

Shiba Inu (SHIB) rose 23% in 24 hours, potentially fueled by an explosion in its burn rate (up 33,800%) and progress on its layer 2 solution, Shibarium. Despite analysts’ predictions of significant price increases, achieving goals like erasing two zeroes from SHIB’s valuation would require a highly improbable market capitalization of $800 billion. Climb the cryptographic ladder

Shiba Inu (SHIB) has been the best performing cryptocurrency in the last 24 hours (from the top 100 club), registering a 23% price increase. It is currently trading at approximately $0.00001895 (according to CoinGecko data), a level last seen in mid-July.

SHIB Price, Source: CoinGecko

Its market capitalization exceeded $11 billion, making it the fourteenth largest in the entire crypto sector. The meme coin remains the second largest in its niche, behind only Dogecoin (DOGE), whose market capitalization is approaching $18 billion.

SHIB’s stunning resurgence coincides with an explosion of its combustion mechanism. The data shows that the burn rate has skyrocketed by 33,800% on a daily basis, resulting in almost 2 billion tokens sent to a null address.

The ultimate goal of the program is to reduce the huge circulating supply of Shiba Inu, potentially causing the price to rise (if demand remains the same or increases). The SHIB team and community have destroyed more than 410 trillion tokens since the mechanism was adopted, leaving about 583.5 trillion in circulation.

Another factor that could contribute to the recovery of the asset is the progress of the layer 2 scaling solution – Shibarium. Recall that the network recently passed the 7 million milestone in terms of blocks processed, while the number of total transactions is just south of 420 million.

It is worth mentioning that SHIB is not the only meme coin to post significant gains today (September 27). The sector’s market capitalization has increased by 14% in the last 24 hours, currently standing at around $54 billion.

Top memes including Dogecoin (DOGE), Pepe (PEPE), Bonk Inu (BONK), Floki Inu (FLOKI) and many more are up by double digits. Conversely, PepeCoin (PEPECOIN), Tron Bull (BULL) and Toshi (TOSHI) are among the few that have witnessed some losses.

SHIB’s next potential target

A popular analyst who envisioned more gains for the meme coin is X user JAVON MARKS. The trader noted “multiple confirmed bullish patterns” on its price chart, suggesting it could be headed for a 315% jump to $0.000081.

Not long ago, user X Pepa outlined an even more optimistic forecast, stating that SHIB could wipe two zeros from its valuation in the near future. However, that would require its market cap to explode to nearly $800 billion, making the prediction quite unlikely.

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