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Shiba Inu (SHIB) leads the market with a 21% surge, fueled by Shibarium’s growth, rising staking, and an aggressive burning strategy.
Shiba Inu (SHIB) has emerged as the top performer among the leading cryptos, witnessing a 21% price surge in the last 24 hours. According to CoinGecko, SHIB is currently trading at approximately $0.00001912.
This price movement comes amid growing activity within the Shiba Inu ecosystem, highlighting the potential impact of recent developments on its market dynamics.
Rising Market Cap And L2 Surge
SHIB’s market capitalization saw a dramatic rise, adding $3.3 billion in value within a day, positioning it as the second-largest meme coin after Dogecoin (DOGE), which has a market cap approaching $18 billion.
Crypto enthusiasts Santiago R Santos are particularly focused on the source of liquidity driving this surge. Santos has even noted that SHIB’s market cap increase surpasses the combined market values of WIF at $2.1 billion and POPCAT at $1 billion.
SHIB just added a cool $3.3B in market cap today. That’s more than WIF ($2.1B) and POPCAT ($1B) combined
Where is the liquidity coming from? 🥠🐉 pic.twitter.com/aqWQlHJJtr
— Santiago R Santos | #9159 (@santiagoroel) September 26, 2024
Reports indicate that recent developments within Shiba Inu’s layer-2 scaling solution, Shibarium, are contributing to this uptrend. The platform’s Total Value Locked (TVL) rose to $3.64 million. Shibarium’s growing TVL reflects increased staking and liquidity services, signaling a heightened level of user activity.
Further bolstering Shibarium’s ecosystem, 93.7 billion KNINE tokens have been bridged to the network, illustrating rising user confidence. This inflow of tokens highlights a trend of participants actively engaging with Shibarium’s offerings. Notably, this surge in staking momentum has coincided with a significant rise in SHIB’s burn rate, pointing to broader community efforts aimed at supply reduction.
Supply Reduction Efforts
The SHIB community continues its aggressive burning strategy, which aims to reduce the coin’s vast circulating supply and potentially drive price increases. Recent data reveals that SHIB’s burn rate soared by 33,818.39% in a single day, resulting in the removal of nearly 1.9 billion tokens from circulation.
These efforts have cumulatively burned over 410 trillion tokens, with approximately 583 trillion remaining.
Potential For Further Upside?
Amid these ecosystem developments, market analysts have identified a technical breakout in SHIB’s price action. Analysis suggests that SHIB has broken out of a falling wedge pattern, which often indicates a shift from a downtrend to a potential bullish reversal.
The breakout sets the stage for further gains, with some projections estimating that SHIB could reach a target price of $0.000081. This pattern began forming after SHIB’s decline from its yearly high in March, creating a setup that now positions the asset for possible upward movement.