The Shiba Inu’s market capitalization has now surpassed the Binance USD stablecoin, coinciding with a period of positive run for the popular meme coin.
According to BeInCrypto data, the market capitalization of Shiba Inu rose to $6.96 billion during the early trading hours of the day before returning to the current $6.81 billion. On the other hand, the BUSD market fell to $6.68 billion over the same period.
Meanwhile, SHIB’s market cap increase coincided when the meme coin outperformed the general market in the last 24 hours. The total cryptocurrency market cap is down 0.3% over the past 24 hours, as leading assets such as Bitcoin, Ethereum, Dogecoin, and XRP have shed some of their values.
Why SHIB is doing so well
The Shiba Inu’s positive performance is due to the community’s recent milestones. In March, it launched a beta version of its Layer 2 network Shibarium called Puppynet.
According to available data, the total number of wallets connected to Puppynet rose to 6 million from 4.05 million this weekend. Besides, the network’s transaction volume has also exceeded 3.2 million as of press time.
The higher activity rate on the Shibarium is good for the token because it has increased the SHIB burn rate. on 1.9 billion SHIB tokens It has been burned in the past seven days, according to Shepburn.
Like stock buybacks, burning tokens takes them out of circulation and can boost the price of the token. Thus, SHIB Burn is one of the factors that boost the price of the cryptocurrency.
IntoTheBlock data It further shows that long-term Shiba Inu holders have reached a new high of 835,780. According to the data, these addresses now account for 67% of all addresses containing the meme currency. This indicates that an increasing number of investors now see digital assets as valuable assets that can be held for their long-term benefits.
Decreased supply of BUSD
While SHIB is enjoying more adoption and growth from the community, cryptocurrency investors have been abandoning BUSD. Since BUSD-issued Paxos announced it would stop minting new coins, the supply of stablecoins has decreased by about $10 billion.
Since then, the stablecoin has been delisted by Coinbase, and Binance has stripped away its special perks such as zero trading fees.
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