Is This Why Shiba Inu’s (SHIB) Price Soared 23% Daily? (Details)

TL;DR

• Shiba Inu (SHIB) surged 23% in 24 hours, potentially fueled by an explosion in its token burn rate (33,800% increase) and progress on its layer-2 solution, Shibarium.
• Despite analyst predictions of significant price gains, reaching targets like erasing two zeroes from SHIB’s valuation would require a highly improbable market cap of $800 billion.

Climbing the Crypto Ladder

Shiba Inu (SHIB) has been the best-performing cryptocurrency in the past 24 hours (from the top 100 club), registering a 23% price increase. It currently trades at approximately $0.00001895 (per CoinGecko’s data), a level last observed mid-July.

SHIB Price, Source: CoinGecko

Its market cap jumped above $11 billion, making it the 14th-biggest in the entire crypto sector. The meme coin remains the second-largest in its niche, trailing behind only Dogecoin (DOGE), whose capitalization is inching towards $18 billion.

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

The program’s ultimate goal is to reduce the tremendous circulating supply of Shiba Inu, potentially triggering a price increase (should demand remain the same or rise). The team and the SHIB community have destroyed over 410 trillion tokens since the adoption of the mechanism, leaving around 583.5 trillion in circulation.

Another factor possibly contributing to the asset’s rally is the progress of the layer-2 scaling solution – Shibarium. Recall that the network recently surpassed the 7 million milestone in terms of processed blocks, while the number of total transactions is just south of 420 million. 

It is worth mentioning that SHIB is not the only meme coin charting significant gains today (September 27). The sector’s market cap is up 14% in the last 24 hours, currently set at roughly $54 billion.

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

SHIB’s Next Potential Target

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

Not long ago, the X user pepa outlined an even more optimistic forecast, claiming SHIB could erase two zeroes from its valuation in the near future. Nonetheless, this would require its market capitalization to explode to nearly $800 billion, making the prediction quite improbable.