Why Shiba Inu (SHIB) Price is Soaring: Shibarium Fees and Meme Coin Rally Insights
2024-09-27
Shiba Inu (SHIB), the second-largest meme coin, has recently experienced a sharp rise, hitting its highest price level since July 27. The price surge on September 26 was driven primarily by rising Shibarium fees, signaling increased network activity. Additionally, a broader rally in meme coins has added to the positive momentum surrounding SHIB.
Key Takeaways
- Rising Shibarium Fees: Shibarium’s transaction fees surged by 1,522%, indicating a substantial increase in network activity.
- SHIB Burn Rate: The Shiba Inu burn rate spiked by 640%, contributing to supply reduction and potential price appreciation.
- Meme Coin Rally: SHIB’s rise coincides with a broader meme coin rally, with tokens like Pepe and Popcat also experiencing strong gains.
Shibarium Fees and Network Activity Drive SHIB Surge
Shiba Inu’s price jumped to $0.000017 as Shibarium, its Layer-2 network, saw a massive spike in fees, up from 27 to 438 in just a few days. This sharp increase indicates heightened user engagement and activity on the network. Shibarium’s fee system is integral to Shiba Inu’s ecosystem, as a portion of the revenue is used to buy and burn SHIB tokens, reducing its circulating supply.
Recent data reveals that Shibburn recorded a 640% rise in SHIB’s burn rate, with over 5.5 million tokens removed from circulation in the past 24 hours. This decrease in token supply, combined with increasing network activity, has created a bullish scenario for Shiba Inu.
Meme Coin Rally Adds Momentum to SHIB Price
Shiba Inu’s surge is also part of a broader meme coin rally, which has seen tokens like Pepe (PEPE) rise by 7.5% and Popcat (POPCAT) climb by 15%. Meme coins have historically shown a tendency to move in tandem, benefiting from speculative market sentiment. The total market cap of meme coins has now reached $50.9 billion, reflecting renewed interest in this niche of the crypto market.
Technical Analysis Supports Continued SHIB Growth
Source: Tradingview
From a technical perspective, Shiba Inu’s price movement is also signaling a continuation of its bullish trend. The token formed a double-bottom chart pattern and broke through a crucial resistance level at $0.000016, marking its highest price since August 24. Additionally, SHIB crossed above a descending trendline, further supporting the case for continued upward movement.
The Relative Strength Index (RSI) is also rising, indicating increasing momentum and suggesting that Shiba Inu may target the $0.00002 resistance level in the near future.
FAQs
What caused Shiba Inu’s recent price surge?
The price surge is primarily driven by rising Shibarium fees, increased token burns, and a broader rally in meme coins.
How does Shibarium impact Shiba Inu’s price?
Shibarium’s network activity and fees contribute to Shiba Inu’s token burn, reducing supply and potentially boosting the price.
What is Shiba Inu’s price prediction?
Technical analysis suggests that Shiba Inu may target a key resistance level at $0.00002, with bullish momentum likely to continue.
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Disclaimer: The content of this article does not constitute financial or investment advice.
