Shiba Inu (SHIB) has joined the ranks of the top ten most valuable altcoins after a remarkable run that saw it appreciate by about 17% in just 24 hours, displacing the popular Proof-of-Stake (PoS) layer-1 blockchain Cardano (ADA) as it edges closer to the Elon Musk inspired meme coin Dogecoin (DOGE).
#SHIB just flipped Cardano
Move higher
More 69s
Let’s go #SHIBARMY
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— Lola (@CryptoLollla) May 29, 2024
According to the cryptocurrencies ranking on the renowned crypto trackers’ site, Coincodex, SHIB is currently the tenth largest crypto asset by market capitalization, worth around $16.86 billion, displacing ADA in the eleventh place with a market cap of $16.53 billion.
Consequently, SHIB is now two steps away from equaling DOGE’s market capitalization worth at about $24.38 billion, which ranks it as the eighth most valuable cryptocurrency.
Possible Catalysts Of SHIB’s 17% Surge That Saw It Overtake ADA
Over the years, Shiba Inu’s impressive market actions have been associated with a significant burn rate in the tokens over 589 trillion circulating supply, a phenomenon that was instrumental in SHIB’s scintillating run in the 2021 bull season that made most of the token’s early investors millionaires.
For context, Ethereum’s co-founder, Vitalik Buterin, had incinerated 90% of his SHIB holdings, which amounted to about 410 trillion tokens in May 2021. The bold move by the co-founder inspired SHIB’s remarkable ascent to attain a $0.00008819 all-time high (ATH) in October 2021.
So far, Buterin’s inspired token burn remains the most significant token elimination adventure in the Shiba Inu ecosystem, evidenced by the token’s incineration statistics on Shibburn.
No Significant Improvement On Burn Rate And Shibarium Transactions
According to the burn data, SHIB’s token incineration rate recorded a 72.9% decline, eliminating only 1,525,176 coins in the past 24 hours. SHIB’s total burn from the initial supply is approximately 410.73 trillion, implying that apart from Buterin’s contribution, the Shiba Inu ecosystem has only succeeded in burning roughly 730 billion tokens.
In a nutshell, the statistics above do not indicate any significant incineration action, implying that the SHIB’s recent 17% surge within 24 hours will most likely emanate from other sources.
On the other hand, Shiba Inu’s layer-2 scaling solution network, Shibarium, saw no significant positive changes in its transaction count, with an 8.6K daily count, indicating that the scaling solution might still be lacking considerable adoption.
Hence, the question about what could have fuelled SHIB’s impressive run would most likely emanate from other variables ranging from market technicality, the coin’s large investors’ trading activities, market sentiments, etc.
SHIB And ADA Market Readings Today – Will Previous Trend Repeat?
It is worth noting that SHIB’s latest price actions that saw it flip Cardano are not new occurrences in the crypto space. Interestingly, the canine-themed token overtook ADA earlier this year in March, following SHIB’s rally that saw it ascend around the $0.00004 price level.
However, the show was transient as ADA reclaimed its spot after SHIB retracement to the $0.00002 price region. Based on present market standings, chances are high that history could repeat considering the difference between ADA and SHIB’s market capitalization value, as both are currently around the $16 billion level.
Meanwhile, based on current standings for both coins, SHIB possesses a better outlook to sustain the present run than ADA to reclaim its spot. Cardano’s risk assessment on Coincodex revealed that the coin only outperformed 28% of the top 100 performing crypto assets, excluding Ethereum (ETH) and Bitcoin (BTC); it is trading below the 200-day Simple Moving Average (SMA), with just 12 green days in the past 30 days.
On the other hand, SHIB outperformed 73% of the top 100 cryptocurrencies with remarkable actions, including BTC and ETH, and it is trading above the 200-day SMA. Interestingly, Shiba Inu’s risk assessment analysis boasts a better outlook than DOGE, which has ousted just 55% of the top 100 crypto assets, excluding Bitcoin.
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