- Shiba Inu (SHIB) has overtaken Litecoin in market cap after a strong rally and a 2,866% spike in its token burn rate, signaling renewed investor interest.
- The surge in burns and price suggests growing momentum for SHIB, with the community aiming to boost scarcity and long-term value.
Shiba Inu (SHIB) has once again made headlines after a powerful rally pushed it to the 18th position by market cap. Notably, this move was is so important as as it moved past Litecoin (LTC) in the global cryptocurrency rankings.
With a market capitalization of $9.34 billion and a current trading price of $0.00001586, SHIB now holds the 18th spot among the top cryptocurrencies, just ahead of Litecoin’s $9.15 billion market cap.
The meme-inspired cryptocurrency has gained significant momentum over the past two weeks, rising 5.43% in the last 24 hours, 15.36% over the past week, and a remarkable 39.47% in the last 30 days. Earlier today, it hit a two-month high of $0.00001587, reigniting interest among investors and traders.
A major catalyst for this renewed momentum is Shiba Inu’s dramatic spike in burn rate. According to data from Shibburn, the SHIB burn rate surged by 2,866% in just 24 hours, resulting in the permanent removal of 2.19 million tokens from circulation across 14 transactions.
One unknown address “0x188…c3cdd” was responsible for burning over 1.34 million SHIB in eight separate transactions, including a single burn of 1 million tokens.
While 2.19 million tokens might seem small compared to Shiba Inu’s enormous circulating supply, the spike in burn activity signals a community-driven effort to reduce supply and potentially drive long-term price appreciation.
Burn events help create scarcity, which is especially impactful for a token like SHIB that originally launched with a quadrillion-token supply.
Despite the recent rally, on-chain data reveals a mixed picture for SHIB holders. Approximately 670,860 addresses holding 205.77 trillion SHIB are currently in profit. However, a majority, 728,050 addresses holding a combined 746.26 trillion tokens, remain at a loss. This figure includes over 410 trillion SHIB stored in the burn wallet, effectively out of circulation.
SHIB’s ability to overtake Litecoin is a notable achievement, as it underscores the growing influence of community-backed tokens in the broader crypto ecosystem. This comes at a time when retail enthusiasm is ramping up and the market begins to recover from recent downturns.
While the current burn rate still represents an 89.53% decline compared to the previous week, the dramatic 24-hour spike has renewed optimism among Shiba Inu supporters. If burn trends continue and SHIB maintains upward price momentum, the token may soon challenge higher-ranking cryptos in market cap, further solidifying its status beyond just meme coin territory.
