Shiba Inu, a popular meme coin, demonstrated strong performance on August 6 and continues to do so post-Monday’s crash. It has surged by approximately 20% since hitting a low and is currently valued at around $0.00001359. However, this still represents an 18% decline over the week.
The recovery aligns with the revival of key metrics within Shiba Inu’s ecosystem. Data from IntoTheBlock indicates a nearly 500% surge in SHIB’s aggregated daily volume for transactions exceeding $100K, reaching close to $120 million.
Another noteworthy metric showing growth is the burn rate, which spiked by 1,244% in the past 36 hours, resulting in over 2.7 million tokens being eliminated.
Although the monetary value of the burned tokens is minimal, sustained efforts in this area could have a positive impact on the meme coin’s price. The purpose of the mechanism is to reduce the extensive circulating supply, which, coupled with potential demand increases, should lead to a rally, as per economic fundamentals.
In July alone, the SHIB team burnt close to 380 million tokens through 178 transactions. Data indicates that around 41% of the total supply (nearly 411 trillion coins) has already been sent to a null address.
Meme Coin Market Recovery
Shiba Inu is not the sole meme coin witnessing positive movement. The collective market capitalization of the sector crossed $40 billion, a significant rebound from the around $33 billion low recorded on Monday.
Dogecoin (DOGE) gained 10% on Tuesday, while Pepe (PEPE) and Solana-based Bonk Inu (BONK) surged by 17% and 14%, respectively.
Top performers included BRETT (32%), MEW (35%), POPCAT (38%), and NEIRO (50%), with NEIRO soaring by 280% weekly despite recent insider trading allegations. Its market capitalization exceeded $200 million, making it the 18th largest in the meme coin realm.
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