SHIB's 37% Rally Sets Stage for Memecoin Cycle Ahead of August

High-cap memecoins are leading the crypto market, with Shiba Inu (SHIB) at the center of attention. Over the last 24 hours, SHIB has rallied 37% to become one of the top gainers in the market, reclaiming $0.000015 and reaching two-month highs.

The surge in SHIB's price is not just driven by leverage, but also by a combination of whale buying and rising token burns. According to Shibburn data, over 279.7 million SHIB tokens have been burned, adding a supply-side tailwind to the move.

CoinMarketCap data shows that the memecoin market cap has added just over $1 billion in the same period, but this growth is concentrated among a handful of high-cap assets rather than across the broader memecoin market.

The build-up of leverage around SHIB and other high-cap memecoins raises concerns about the fragility of the rally. If sentiment shifts, crowded positioning can unwind quickly, potentially triggering a sharp flush or even a broader crypto market correction.