Outside Source
TL;DR
- Shiba Inu’s price has reached a five-month high amid overall resurgence of the entire meme coin niche.
- Check out some of the potential reasons fueling this significant rally.
SHIB on the Run
The second-largest meme coin – Shiba Inu (SHIB) – has been one of crypto’s rockstars lately. Its price has jumped by over 50% in the past week, currently trading at around $0.00002576. Several hours ago, it soared to $0.00002737, a level last observed in May this year.
As of the time of writing, SHIB’s market cap is well above $15 billion, recently flipping Tron (TRX), whose capitalization stands at approximately $14.2 billion.
Some of the most probable reasons leading to the asset’s bull run include the overall resurgence of the crypto sector, the renewed meme coin mania, and Shiba Inu’s burning program.
Data shows that the burn rate has exploded by 1,837% in the past 24 hours, resulting in over 463 million tokens removed from circulation. The mechanism’s ultimate goal is to reduce the huge supply of SHIB, making it scarcer and potentially more valuable in time.
The total amount of burnt tokens since adopting the program equals more than 410 trillion, meaning there are currently around 589 trillion in circulation.
Additional Factor
Another element that might have positively impacted SHIB’s price in the past few days is Shibarium’s comeback. Daily transactions processed on the layer-2 scaling solution since the start of November have been in the millions.
The total number of Shibarium transactions is now just south of the 500 million milestone, while total blocks stand at around 7.8 million.
The protocol plays a pivotal role in enhancing the SHIB ecosystem. It reduces congestion on the network, leading to faster transaction speed and lower fees. Additionally, it incorporates a burning mechanism, which, similarly to the one mentioned above, aims at reducing the circulating supply and potentially driving the SHIB price up.
For more updates on the ecosystem, check out our Shibarium news page.
This article first appeared at CryptoPotato
