Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has experienced a surge in the past 24 hours, rising by over 16% and briefly touching a market cap of $17 billion. This impressive performance has allowed SHIB to flip Cardano (ADA) and secure its position as the 11th biggest cryptocurrency in the market.
TLDR
- Shiba Inu (SHIB) surged by 16% in the past 24 hours, reaching a market capitalization of nearly $17 billion and flipping Cardano (ADA) to become the 11th largest cryptocurrency.
- The surge in SHIB’s price coincides with an overall revival in the meme coin sector, with many other meme coins experiencing substantial price increases.
- Two essential factors that may have contributed to the recent Shiba Inu rally are the project’s burning mechanism and the advancement of its layer-2 scaling solution, Shibarium.
- A long-term SHIB holder turned a $2,625 investment into over $1.1 million after holding the meme coin for more than three years, showcasing the potential for significant returns in the meme coin market.
- While Dogecoin (DOGE) and Shiba Inu have been lagging in price action, other dog-themed meme coins such as Dogwifhat (WIF), Floki (FLOKI), and Bonk (BONK) have delivered double-digit weekly gains.
The recent rally in Shiba Inu’s price is part of a broader revival in the meme coin sector, with numerous assets witnessing substantial price increases and the total market capitalization of meme coins surpassing the $70 billion mark.
Despite the surge, SHIB remains the second-biggest meme coin, trailing behind Dogecoin (DOGE), which currently boasts a market capitalization of over $24 billion.
Two essential elements that may have contributed to the recent Shiba Inu rally are the project’s burning mechanism and the advancement of its layer-2 scaling solution, Shibarium.
The burn rate of SHIB tokens exploded by almost 600% a week ago, resulting in the destruction of nearly 10 million tokens.
The program’s ultimate goal is to reduce the tremendous circulating supply of the meme coin, potentially making it scarcer and more valuable over time. To date, the SHIB team has sent approximately 41% of the total supply to a null address.
Shibarium, which aims to elevate Shiba Inu above its rivals by lowering transaction fees and improving speed, has made significant strides since its launch last summer.
It has surpassed the 400 million mark in total transactions and undergone two major upgrades to improve user experience, empower the community of developers and innovators, and implement quicker block processing times.
The potential for significant returns in the meme coin market was recently highlighted by the success story of a long-term SHIB holder who turned a $2,625 investment into over $1.1 million after holding the meme coin for more than three years.
After being dormant for 3.5 years, the super diamond trader finally sold $SHIB at a profit.
He spent 2 $ETH($2,625) to buy 48.09B $SHIB on Feb 1, 2021, and sold it for 278.7 $ETH($1.1M) just now, a gain of 419x!https://t.co/Pw9i9wbKcn pic.twitter.com/Qvp9wKpWCc
— Lookonchain (@lookonchain) May 27, 2024
This impressive return showcases the potential for substantial gains in the meme coin sector, although it is important to note that such returns are not guaranteed and come with a high level of risk.
While Dogecoin (DOGE) and Shiba Inu have been lagging in price action recently, other dog-themed meme coins have been experiencing notable gains.
Solana-based Dogwifhat (WIF) rose 34%, Floki (FLOKI) rose 35%, and Bonk (BONK) rose over 25% over the past week, demonstrating the widespread interest in meme coins across various blockchain platforms.
