The cryptocurrency markets are abuzz this week with the remarkable resurgence of memecoins like Shiba Inu and Dogecoin. Shiba Inu (SHIB) has seen its price rocket by over 50% in the last 24 hours, sending shockwaves throughout the crypto community. This parabolic price move seems to have been driven by a combination of factors, including surging burn rates, bullish predictions by key figures, and overall exuberance in the memecoin sector.
According to data from CoinMarketCap, the price of SHIB sits at $0.00001976 at press time, representing a staggering 24-hour gain of 52.85%. The memecoin now boasts a market capitalization of $11.65 billion. Trading volumes have also exploded in tandem, nearing the $4 billion mark with a 24-hour surge of 93%.
Much of this intense buying frenzy appears to have been sparked by a dramatic increase in SHIB’s token burn rate. On-chain data reveals that nearly 3.75 million SHIB tokens were destroyed in the last 24 hours alone, representing a monumental 30,000% spike in burn activity. This rampant reduction in supply has stoked major optimism amongst SHIB investors, with over 410 trillion tokens having been removed from circulation so far.
“The accelerating burn rate has acted like rocket fuel for SHIB’s price,” commented market analyst Bhushan Akolkar. “As more tokens get permanently deleted, circulating supply drops substantially. This puts tremendous upwards pressure on the price due to increased scarcity.”
In addition to the ramped up burns, several influential figures within the SHIB community have issued bold proclamations that seem to be further driving the memecoin’s violent upswing. Lucie, a prominent SHIB marketer, has gone so far as to predict an earth-shattering 800% price increase within a mere week’s time.
Drawing parallels with SHIB’s momentous 2021 bull run, Lucie insists that such a surge is possible even without additional token burns over the coming days. “Last year, we saw SHIB storm over 800% higher in just 7 days based on hype and speculation alone,” Lucie explained. “We could easily see history repeat itself, especially with the added tailwind of massive burn volumes.”
The euphoric movements in the broader memecoin sector also appear to be spilling over into SHIB. Perpetual darling Dogecoin (DOGE) has mounted its own double-digit surge, having risen by 18% within the last 24 hours. Memecoin newcomer Dogwifhat (WIF), which operates on the Solana blockchain, has meanwhile experienced an even more explosive 311% weekly rally.
According to leading on-chain analytics platform Santiment, memecoins are definitively back in vogue after a multi-month lull. “Social dominance and token value have become tightly correlated for memecoins once more,” noted Santiment’s CEO Michaël van de Poppe. “This makes predicting price peaks much easier during high energy periods like we’re currently seeing.”
With the markets in full-blown memecoin mania, further volatility is widely expected. Several technical analysts have eyed the possibility of a short-term pullback after such vertical price moves. However, the overwhelming sentiment seems to be that memecoins still have ample room left to run.
“Stimulus from rampant speculation and surging community engagement continues to overpower any bearish tendencies for now,” explained veteran trading expert Jacob Rochester. “The Fear Of Missing Out (FOMO) is very real right now. We may see these names cool off briefly, but another leg higher seems likely.”
In light of the wild price action, analysts universally agree that caution and prudent position sizing are critical at this stage. According to Rochester, “Memecoin gains can vanish just as quickly as they appear. The high risk, high reward nature of this sector is not for the faint of heart. Never invest more than you can afford to lose.”
Even so, the eruption of memecoin mania has undoubtedly set the crypto world abuzz. All eyes now remain on Shiba Inu and its memecoin peers to see if they can sustain this phenomenal momentum. With a massive influx of retail interest, in addition to the accelerating burn rates, the stage seems set for even greater fireworks in the days ahead.
