Shiba Inu Flips Solana in Market Cap, Here's What's Happening

According to CoinMarketCap data, Shiba Inu (SHIB) ranks as the 13th largest cryptocurrency by market capitalization. At a market valuation of $5.41 billion, Shiba Inu is now ahead of Tron's TRX and Solana's SOL in this regard. TRX ranks 14th largest, followed by Solana, with both having market valuations of $5.23 billion and $5.15 billion, respectively.

SOL, seen by some traders as almost a proxy for FTX, suddenly became a lucrative target for short sellers. According to data from CoinMarketCap, its market cap has decreased from a high of about $80 billion last November to a little over $5.4 billion.

SOL, the native token of the Solana blockchain, has lost more than half of its value in just one week and fell as much as 50% on Wednesday. Even worse was the loss in value of FTT, the native coin of FTX. At $14.29, Solana is currently down 19% over the past 24 hours.

The "Ethereum killer" saw a sharp decline that rippled throughout its ecosystem as a result of its ties to Sam Bankman-Fried, the creator of the cryptocurrency hedge fund Alameda Research and cryptocurrency exchange FTX.

This caused a spillover into the Solend lending protocol, which has seen a jump in liquidations, resulting in a buildup of bad debts on the platform totaling about $3.5 million. According to Solend statistics, a sizable stake backed by 2.63 million SOL tokens was partially liquidated on Wednesday.

SHIB burn rate jumps whopping 478%

According to the Shibburn website, the burn rate of Shiba Inu is up a whopping 478%. Meanwhile, 5,712,508 SHIB were burned in the last 24 hours. Currently, SHIB is attempting to recoup losses after dipping as low as $0.0000076 on Nov. 10.

At the time of publication, SHIB was changing hands at $0.0000098, up 1.59% in the last 24 hours.