Analyst says Shiba Inu will pass to Dogecoin as SHIB burn rate increases

Cryptocurrency analyst Altcoin Sherpa recently expressed the possibility of Shiba Inu (SHIB) surpassing Dogecoin (DOGE) as the largest memecoin by market capitalization. This statement comes at a time when SHIB’s fundamentals are showing strength, with the token’s burn rate increasing significantly over the last 24 hours.

Sherpa suggested in a post on X (formerly Twitter) that the competition between DOGE and SHIB will be fierce this cycle, with “a few moments” where the latter will overtake the former. DOGE and SHIB are the main memecoins and occupy respectively the eighth and twelfth position among the largest cryptocurrencies by market capitalization.

Meanwhile, the cryptocurrency analyst noted that SHIB has “a few things going on” in terms of its fundamentals and highlighted the Shibarium layer 2 network as one of those things. Since launch, Shibarium has indisputably contributed to the growth of SHIB and positioned it as more than just a memecoin.

“This is why SHIB also appears to have an edge over DOGE. It has a real-life utility in Shibarium, unlike DOGE, which someone like Ripple CEO Brad Garlinghouse has already criticized for not providing real value. Additionally, the Shiba Inu team has been actively engaged in construction and continues to develop initiatives that help increase the value of SHIB,” said analyst Scott Matherson.

Shiba Inu

One such initiative involves the regular burning of SHIB tokens. Impressively, the team even committed part of the transaction fees earned on the Shibarium network to also burn SHIB. It’s worth noting that SHIB’s burn rate has increased recently, with burn tracking site Shibburn reporting an 89% increase over the past seven days.

The burn rate over the last 24 hours is even more impressive. During this period, there was a 4000% increase, with over 154 million SHIB tokens burned.

While listing the cons of Shiba Inu, Altcoin Sherpa stated that those who are investing in the meme coin now are unlikely to see up to a 20x return on investment. This suggests that it is nearly impossible for SHIB to enjoy historic gains like the ones it recorded in the last bull market.

Despite this, SHIB is still expected to make reasonable gains in this bull market, with Altcoin Sherpa admitting that SHIB’s chart “still looks amazing.” However, he urged investors to be patient as this move may not happen instantly.

As for how high SHIB could rise this market cycle, cryptocurrency analysts like Xanrox and Javon Marks predicted the meme coin would at least surpass its all-time high of $0.00008845.