As a seasoned crypto enthusiast with years of market analysis under my belt, I must say that the current state of Shiba Inu (SHIB) has me intrigued and cautiously optimistic. With its impressive burn rate and surging ecosystem activity, SHIB appears to be making steady progress towards long-term growth.
The digital currency known as Shiba Inu (SHIB) currently holds the 13th position in the CoinMarketCap rankings, with an impressive market value exceeding 16.8 billion dollars.
Over the last three months, the value of SHIB has significantly increased by more than double, reaching its highest point locally on December 7th. However, it experienced a decline following a general market adjustment.
However, the inherent volatility of meme coins makes price movements highly unpredictable.
SHIB price history
Introduced in August 2020, Shiba Inu was dubbed the potential rival of Dogecoin. It garnered interest due to an unusual approach: dedicating half of its total tokens to be given to Ethereum founder, Vitalik Buterin.
As a crypto investor, I witnessed an incredible surge in the token’s popularity throughout 2021, reaching levels that challenged both Dogecoin and Ethereum in terms of trading volumes at their peaks. However, the following year saw a steep decline, with the price plummeting more than 90%, dropping down to less than eight millionths of a dollar by 2023.
Regardless of the hurdles it’s faced, Shiba Inu (SHIB) appears to be rebounding. The cryptocurrency has soared by more than 220% in recent months and is now worth over 30 millionths of a dollar. Although this value is significantly lower than its peak in November 2021, it matches the highs attained in May of the same year.
What is SHIB burn rate?
The Shiba Inu burn rate serves as a key ecosystem metric, reflecting the community’s optimism about the SHIB project.
Lowering the total number of tokens available could increase their scarcity, helping to preserve a favorable public perception, which might impact the market value of SHIB.
Using Shibarium for transactions means that SHIB tokens are utilized to cover transaction costs, and a part of these transactions gets burned. This burning process is an integral part of a deflationary system, which can potentially contribute to the long-term value appreciation of SHIB. However, to create substantial price changes, it’s necessary to conduct more extensive burns to amplify the impact.
Shiba Inu and Bitcoin correlation
The relationship between Shiba Inu (SHIB) and Bitcoin (BTC) generally stays weak. Nevertheless, alternative coins like SHIB typically respond to changes in Bitcoin’s value, particularly during upward trends caused by institutional investments, primarily during bull markets.
Historically, the correlation has been weak since the last bullish cycle.
Since the last cycle’s lowest point, Bitcoin’s price has risen approximately 5.72 times. This increase is quite similar to the growth seen at comparable stages in the 2015-2018 and 2018-2022 cycles, with multipliers of 5.18x and 5.93x respectively, as reported by Ark Invest.
Based on the typical pattern of its previous cycles, Bitcoin’s price might experience a significant surge and reach an estimated $243,000 within about a year, which would be around 880 days following the cycle low in November 2021.
Altcoins are likely to follow BTC footsteps in the beginning of 2025.
Will altcoin season reemerge?
Over the course of this year, twenty of the leading fifty cryptocurrencies by market value have seen greater increases than Bitcoin’s growth.
In November, the trading activity and open positions (open interest) reached their highest points for the year, marking significant milestones. According to recent findings from CryptoQuant, it seems that the trading volume for alternative coins isn’t primarily influenced by Bitcoin pairs.
The increased trading of alternative coins (alts) is now less about shifting investments away from Bitcoin, as it’s being fueled by trades with stablecoins and fiat currencies, signaling genuine market expansion instead of asset rotation. In other words, the liquidity provided by stablecoins offers a more accurate explanation for the behavior of the altcoin markets.
— Ki Young Ju (@ki_young_ju) December 2, 2024
This indicates real market expansion isn’t simply a transfer of funds from Bitcoin to other cryptocurrencies, possibly implying that the current altcoin surge might not be contingent on Bitcoin’s price settling down first.
Due to increased market turbulence, there have been substantial sell-offs, notably affecting highly leveraged SHIB positions. This massive selling spree, resulting in a staggering $880 million in losses, underscores the ongoing process of deleveraging, putting additional stress on assets such as SHIB and causing their prices to drop further.
Layer 2 and Chainlink partnership
The Shiba Inu ecosystem makes a significant leap with the incorporation of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) within its Shibarium system. This collaboration marks CCIP as the chief cross-chain foundation for the entire ecosystem.
Partnering together opens up opportunities for wider Decentralized Finance (DeFi) usage and reinforces Shiba Inu’s position as a significant player within the larger blockchain environment.
SHIB developer Kaal Dhairya hinted on X that even more exciting updates are forthcoming:
Regard Chainlink as the initial Infinity Stone embedded in the gauntlet. On my journey to reestablish equilibrium and disintegrate the naysayers. Keep tuned—there are more stones, and greater actions, coming up. 🦴🔥 #SHIBARMY #SHIB #LEASH #BONE #TREAT
— Kaal (@kaaldhairya) December 19, 2024
By incorporating Chainlink within Shibarium, we’ll gain access to sophisticated features like safe, cross-chain token transfers and instant, high-frequency access to current market data.
For the last year, Shiba Inu has been advancing considerably by developing Shibarium, its scalability solution at Layer-2. By embracing practical applications and staking, the initiative intends to achieve a significant breakthrough within the cryptocurrency world, which might trigger a price spike.
Essentially, Shiba Inu is preparing to potentially rise among the leading cryptocurrencies, promising significant increases in worth over time.
Will SHIB reach $0.1 in 2025?
To put it simply, it appears that Shiba Inu’s price, having reached $0.0000667 in October 2021, is not indicating a probable increase of 149,320.59% during this market phase, given the present market patterns and burn rates.
Despite a slight drop in Shiba Inu’s trading volume to $2.28 billion, this figure underscores ongoing involvement from both large investors (whales) and common traders. However, if the token fails to retake the 50 EMA as a support base, it could lead to price tests at lower levels. The 200 EMA at $0.00002044 might function as a possible checkpoint for any potential stabilization.
If there’s no wider market improvement or increased demand, Shiba Inu (SHIB) could potentially experience more price drops.
How much will SHIB cost in 2025?
The Relative Strength Index, or RSI, serves as a simple yet powerful aid in determining suitable entry and exit points when trading Shiba Inu (SHIB), particularly for medium-term and long-term investments.
In simpler terms, the Relative Strength Index (RSI) measures market momentum and ranges from 0 to 100. A reading above 70 means the asset is overbought, which may signal a possible pullback or downturn. Conversely, if the RSI falls below 30, it indicates the asset is oversold, suggesting a potential rebound or increase in value. Therefore, the RSI can be a useful tool for traders to evaluate market trends and make informed decisions about when to buy or sell assets.
During an upward trend for cryptocurrencies like Shiba Inu, the Relative Strength Index (RSI) usually stays above 30 and often goes beyond 70, indicating robust buying activity. On the flip side, during a downward trend, the RSI seldom crosses 70 and frequently dips to 30 or even lower, suggesting weaker market circumstances.
At the moment, the general feeling among traders suggests that Shiba Inu (SHIB) is aiming to regain the $0.00003 mark. If this level is reached, it could open up possibilities for a prolonged surge, potentially driving its weekly high past $0.000033.
Significantly, the rate at which Shiba Inu tokens are being destroyed increased dramatically by 1,068%, leading to the obliteration of more than 51.7 million tokens. Furthermore, the total value locked within Shibarium has significantly risen by 850% since September, indicating an increase in activity within its ecosystem.
Even though they’ve faced some difficulties lately, it’s worth noting that about 64% of Shiba Inu token owners are still making a profit. This highlights the strength and endurance of the Shiba Inu community, as well as its significant impact within the meme coin market.
Looking ahead on a broader scale, the weekly graph suggests a probable price increase towards 2025. Since the correction in December, Shib has a good opportunity to regain the $0.0000300 mark by the first quarter of 2025.
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2024-12-22 21:49