Recording rate soars nearly 2,000% amid recent price hike

TL;DR

The price of Shiba Inu has reached a five-month high amid the general resurgence of the entire meme coin niche. Take a look at some of the potential reasons that have fueled this major rally. SHIB on the Run

The second largest meme coin – Shiba Inu (SHIB) – has been one of the rock stars of crypto lately. Its price has increased by more than 50% in the past week, currently trading around $0.00002576. Several hours ago, it soared to $0.00002737, a level last seen in May of this year.

At the time of this writing, SHIB’s market cap is well over $15 billion, recently edging out Tron (TRX), which has a market cap of roughly $14.2 billion.

SHIB Price, Source: CoinGecko

Some of the most likely reasons leading to the rise in the asset include the general resurgence of the crypto sector, the renewed meme coin craze, and the Shiba Inu burning program.

The data shows that the burn rate has increased by 1,837% in the last 24 hours, resulting in more than 463 million tokens being withdrawn from circulation. The ultimate goal of the mechanism is to reduce the huge supply of SHIB, making it scarcer and potentially more valuable over time.

The total amount of tokens burned since the adoption of the program is more than 410 trillion, which means that there are currently about 589 trillion in circulation.

Additional factor

Another element that could have positively affected SHIB’s price in the last few days is the return of Shibarium. Daily transactions processed on the Layer 2 scale solution since early November have been in the millions.

Shibarium’s total number of transactions is now just south of the 500 million mark, while total blocks stand at around 7.8 million.

The protocol plays a fundamental role in improving the SHIB ecosystem. It reduces network congestion, resulting in faster transaction speed and lower fees. In addition, it incorporates a combustion mechanism that, similar to the one mentioned above, aims to reduce the circulating supply and potentially increase the price of SHIB.

For more updates on the ecosystem, check out our Shibarium News page.

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