Shiba Inu (SHIB) spins Cardano (ADA) after a 16% daily increase.

TL;DR

Shiba Inu (SHIB) rose 16% daily, reaching a market cap of $16.9 billion, making it the eleventh largest cryptocurrency. The rise coincides with a global revival of meme coins, with many other assets seeing substantial price increases. SHIB takes a step forward

The meme coin industry has been making waves in recent hours, with a market capitalization exceeding $70 billion. Numerous such assets are among the market’s best performers today (May 29), posting double-digit price jumps.

Shiba Inu (SHIB) is a notable example, rising more than 16% on a 24-hour scale. The market cap of the self-proclaimed killer Dogecoin briefly touched $17 billion before settling to its current level of roughly $16.9 billion (according to CoinGecko data). Thus, it overtook Cardano (ADA) and became the 11th largest cryptocurrency.

SHIB Market Cap, Source: CoinGecko

Despite the increase, SHIB remains the second largest meme coin, behind Dogecoin (DOGE), which has a market cap of over $24 billion.

Shiba Inu’s latest spike coincides with increases in some important metrics related to its ecosystem. Trading volume in the last 24 hours has increased to almost $1.9 billion, surpassing DOGE ($1.2 billion), PEPE ($1.3 billion) and all other meme coins on that front.

SHIB’s aggregate daily volume (where each transaction exceeds $100,000) reached $214 million, representing a 135% increase compared to the figure seen on May 28.

According to IntoTheBlock, 70% of all Shiba Inu owners currently have paper benefits. The situation was much different in September last year, when almost 90% of those exposed to the asset were underwater.

The possible contributing factors

Two essential elements that may have affected Shiba Inu’s most recent revival are the project’s combustion mechanism and the advancement of its Layer 2 scaling solution: Shibarium.

As reported by CryptoPotato, the burn rate exploded by nearly 600% a week ago, resulting in nearly 10 million tokens destroyed. The ultimate goal of the program is to reduce the huge circulating supply of meme currency, making it scarcer and potentially more valuable over time (assuming demand stays the same or increases). The SHIB team has so far 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 great strides since its launch last summer. It crossed several milestones, including crossing the 400 million mark in terms of total transactions.

It also underwent two major updates to improve the user experience, empower the developer and innovator community, and implement faster block processing times. If you are curious to know more about Shibarium, watch our dedicated video below:

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