Shiba Inu made a strong comeback on Sept. 26, soaring to its highest level since July 27, as Shibariumβs fees surged.
Shibarium Fees are Rising
Shiba Inu, the second-largest meme coin, jumped to $0.000017 as on-chain data showed that Shibariumβs fees rose to 438, significantly higher than this monthβs low of 27, marking a 1,522% increase.
Shibarium is a layer-2 network launched by Shiba Inuβs developers. A big increase in fees indicates that the network is seeing more activity. Indeed, data from Shibariumscan shows that the number of new transactions rose to 8,025 on Sept. 26 from this monthβs low of 2,186.
Shibarium Transaction Fees
Higher Shibarium fees are also significant because part of the collected BONE revenue is converted to SHIB and then burned. Data from Shibburn shows that Shiba Inuβs burn rate rose by 640% in the last 24 hours to 5,555,360 tokens.
Shiba Inuβs surge also coincided with the ongoing meme coin rally. Most meme coins have rallied by over 5% in the last 24 hours, pushing the total market cap to $50.9 billion. Pepe rose by 7.5%, while Mog Coin rose by 14%. Popcat has also risen by 15% in the last seven days, pushing its market cap to over $1 billion. Meme coins often exhibit a degree of correlation.
Shiba Inu Net Outflow
Additional data shows that Shiba Inu has had a net outflow of 41 million tokens in the last seven days. As a result, the total supply of tokens on exchanges has moved to 25.48%. Token outflow is a bullish indicator, suggesting that many investors are holding their coins in personal wallets.
Shiba Inu Crosses Key Resistance
Shiba Inuβs rise was also driven by positive technical indicators. It formed a double-bottom chart pattern and moved above the neckline at $0.000016, its highest swing on Aug. 24.
SHIB also rose above the descending trendline that connects the highest swings since July 16. Additionally, the Relative Strength Index continued rising, signaling that momentum is building.
This price action suggests that the token will continue rising as bulls target the key resistance at $0.00002, its highest level in July.
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