Shiba Inu (SHIB) has re-emerged as a major player in the cryptocurrency market, surging to its highest price since July 27 on September 26. This rally wasn’t random—it was fueled by a powerful combination of rising network activity, strong technical signals, and broader momentum in the meme coin sector. As SHIB climbed to $0.000017, investors and traders alike are asking: What’s driving this surge?
The answer lies beneath the surface—on Shibarium, Shiba Inu’s layer-2 blockchain, where a dramatic spike in transaction fees is signaling increased user engagement and ecosystem growth.
Shibarium Activity Surges
Shibarium, the Layer-2 scaling solution developed by the Shiba Inu team, is at the heart of this latest price movement. On-chain data shows that Shibarium’s transaction fees skyrocketed to 438 BONE—a staggering 1,522% increase from the month’s low of just 27 BONE.
This isn’t just a number—it’s a clear indicator of rising network demand. When fees go up, it typically means more people are using the network to send tokens, interact with decentralized applications (dApps), or participate in NFT mints.
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According to Shibariumscan, daily new transactions jumped to 8,025 on September 26, up from a monthly low of 2,186. This surge in usage suggests growing confidence in the Shiba Inu ecosystem beyond just speculative trading.
But there’s another critical factor: token burning.
SHIB Burn Rate Jumps 640%
A key mechanism built into Shibarium is its fee-to-burn model. A portion of the BONE tokens collected as transaction fees is converted into SHIB and permanently removed from circulation—effectively reducing supply over time.
Recent data from Shibburn reveals that the SHIB burn rate surged by 640% in just 24 hours, with over 5.5 million SHIB tokens destroyed. This aggressive deflationary pressure strengthens the long-term value proposition of SHIB by making it scarcer.
In economic terms, when demand remains steady or increases while supply contracts, upward price pressure becomes inevitable. That’s exactly what’s beginning to unfold.
Meme Coin Market Rallies Together
Shiba Inu didn’t rise in isolation. It’s part of a broader meme coin resurgence that has lifted the entire sector. Over the past 24 hours, the total market capitalization of meme coins has climbed to $50.9 billion, reflecting renewed investor interest.
Notable performers include:
- Pepe (PEPE): Up 7.5%
- Mog Coin (MOG): Up 14%
- Popcat (POPCAT): Up 15% over seven days, now with a market cap exceeding $1 billion
These assets often move in tandem due to shared investor bases, social media hype, and speculative momentum. As sentiment improves across the board, Shiba Inu benefits from the halo effect—riding both its own fundamentals and sector-wide enthusiasm.
Exchange Outflows Signal Strong Holder Confidence
Another bullish signal comes from wallet movement data. According to analytics platform Nansen, Shiba Inu saw a net outflow of 41 million tokens from exchanges over the past seven days.
Why does this matter?
When large volumes of tokens leave centralized exchanges (like Binance or Coinbase), it usually means investors are moving their holdings to private wallets—commonly referred to as “taking custody.” This behavior reflects long-term confidence and reduces liquid supply available for immediate selling.
As a result, the total SHIB supply on exchanges has dropped to 25.48%, tightening market availability and increasing scarcity dynamics.
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Technical Breakout Confirms Bullish Momentum
Beyond fundamentals, technical analysis adds further weight to the bullish case for SHIB.
On the price chart, Shiba Inu formed a classic double-bottom reversal pattern—a reliable sign of trend exhaustion and potential upside. The token then broke above the neckline resistance at $0.000016, which had previously capped gains on August 24.
Even more encouraging, SHIB has now cleared a descending trendline connecting its highest swing points since July 16. Breaking through such trendlines often marks a shift from bearish to bullish control.
The Relative Strength Index (RSI) is also trending upward, currently sitting above 60—indicating strengthening momentum without yet entering overbought territory.
All signs point to continued upward potential.
Next Target: $0.00002
With these technical levels cleared, the next major resistance lies at $0.00002—Shiba Inu’s highest level reached in July. If buying pressure holds, this target becomes increasingly likely.
Traders should watch for sustained volume support and further burn rate acceleration as confirmation that the rally has staying power.
Core Keywords Driving Visibility
To align with search intent and improve discoverability, here are the core keywords naturally integrated throughout this analysis:
- Shiba Inu price
- SHIB surge
- Shibarium fees
- SHIB burn rate
- Meme coin rally
- Crypto technical analysis
- Exchange outflows
- Layer-2 blockchain
These terms reflect what users are actively searching for when tracking SHIB’s performance and market behavior.
Frequently Asked Questions (FAQ)
What caused the recent Shiba Inu price increase?
The surge was driven by rising activity on Shibarium (evidenced by higher transaction fees), an accelerated SHIB burn rate, strong technical breakout patterns, and a broader rally across meme coins.
How does Shibarium affect SHIB’s value?
Shibarium generates transaction fees in BONE tokens, part of which are converted into SHIB and burned. Higher usage leads to more burns, reducing supply and increasing scarcity—potentially boosting price over time.
What is the significance of exchange outflows?
When SHIB moves off exchanges, it means fewer tokens are available for immediate sale. This reduces selling pressure and signals that holders believe the price will rise in the future.
Is Shiba Inu a good investment right now?
While past performance doesn’t guarantee future results, current indicators—such as strong network activity, deflationary mechanisms, and technical momentum—suggest positive short-to-medium term potential. Always conduct your own research and consider risk tolerance.
What is the next price target for SHIB?
The immediate resistance level is $0.00002—the high seen in July. A sustained break above this level could open the door to higher targets, depending on market conditions.
How can I track SHIB burn rates in real time?
You can monitor live burn statistics at Shibburn.com, which provides up-to-date data on how many SHIB tokens have been permanently removed from circulation.
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Final Thoughts
Shiba Inu’s latest rally is more than just another meme-fueled spike—it’s underpinned by measurable growth in its ecosystem. From soaring Shibarium fees and accelerated token burns to exchange outflows and technical breakouts, multiple catalysts are aligning.
While meme coins remain volatile, SHIB continues to evolve beyond pure speculation, building infrastructure and utility that could sustain long-term interest.
As the crypto market watches for the next leg up, one thing is clear: Shiba Inu is back in the spotlight—and this time, it’s bringing fundamentals with it.