Shiba Inu’s market cap has now exceeded Binance USD stablecoin, coinciding with a period of positive run for the popular meme coin.
According to BeInCrypto data, the Shiba Inu market cap rose to as high as $6.96 billion during the early trading hours of today before retracing to its current $6.81 billion. On the other hand, BUSD’s market plunged to $6.68 billion within the same period.
Meanwhile, SHIB’s market cap increase coincided with when the meme coin outperformed the general market in the last 24 hours. The total market cap for cryptocurrencies declined by 0.3% within the previous 24 hours, with leading assets like Bitcoin, Ethereum, Dogecoin, and XRP all shedding part of their values.
Why SHIB is Performing Well
The positive performance of Shiba Inu is due to the recent milestones for the community. In March, it launched a beta version of its layer-2 network Shibarium as Puppynet.
According to available data, the total number of wallets connected to Puppynet increased to 6 million from 4.05 million this weekend. Besides that, the network’s transaction volume has also surpassed 3.2 million as of press time.
This high activity rate on Shibarium is good for the token as it has led to an increased SHIB burn rate. About 1.9 billion SHIB tokens have been burned in the last seven days, according to Shibburn.
Like stock buybacks, burning tokens take them out of circulation and can boost the token’s price. Thus, SHIB Burn is one of the factors boosting the cryptocurrency price.
IntoTheBlock data further shows that Shiba Inu long-term holders have reached a new high of 835,780. According to the data, these addresses now account for 67% of all addresses holding the meme coin. This suggests that an increasing number of investors now see digital asset as valuable assets that can be held for their long-term benefits.
BUSD Supply Decline
While SHIB is enjoying more adoption and growth from the community, crypto investors have been deserting BUSD. Since BUSD’s issuer Paxos announced it would stop minting new tokens, the stablecoin supply has dumped by roughly $10 billion.
Since then, the stablecoin has been delisted by Coinbase, and Binance has stripped its special privileges like the zero-trading fee.
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