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Shiba Inu (SHIB) has re-emerged on the crypto landscape, with a market cap exceeding $16.8 billion and recent price surges capturing investor attention.
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After a period of decline, SHIB has doubled in value over the last three months, suggesting renewed interest from both retail and institutional investors.
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According to COINOTAG, “The resurgence of SHIB reflects a broader trend among altcoins gaining momentum against Bitcoin.”
This article explores the recent revival of Shiba Inu, its burn rate, market correlation with Bitcoin, and future price projections, emphasizing its growing significance.
SHIB price history
Launched as the “Dogecoin killer” in August 2020, Shiba Inu rapidly gained traction by strategically donating half of its supply to Ethereum creator Vitalik Buterin. This unconventional approach initially drew a massive following, with SHIB’s trading volume sometimes outpacing even that of established players like Ethereum.
In 2021, Shiba Inu’s meteoric rise was accompanied by a subsequent decline of over 90%, dipping to below 8 millionths of a dollar early in 2023. However, the past few months have marked a significant recovery, with SHIB appreciating over 220% recently and breaking through the 30 millionth mark. While currently improving, this price still remains far from its all-time high of 0.0000667 experienced in November 2021.
Source: TradingView
What is SHIB burn rate?
The Shiba Inu burn rate is a crucial metric reflecting the community’s enthusiasm and commitment to the ecosystem. It underpins strategies aimed at reducing the token supply to enhance its scarcity and potential value positively.
Source: Shibburn.com
As SHIB is used for transaction fees on Shibarium, a portion of the tokens involved in these transactions is burned, reinforcing this deflationary tactic. While this approach is conducive to long-term appreciation, substantial price impact hinges on the scale of these burns, necessitating broader participation.
Shiba Inu and Bitcoin correlation
The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) is notably minimal, though SHIB often mirrors Bitcoin’s price movements during bullish trends, particularly when institutional investments drive market sentiment.
Source: IntoTheBlock
This weak correlation has persisted since the last bullish cycle, as illustrated by data from Ark Invest; Bitcoin’s price has escalated approximately 5.72 times since the most recent cycle low, reflecting patterns observed in earlier cycles. Should Bitcoin follow past trajectories, it could experience significant price growth, affecting altcoin movements in 2025.
Will altcoin season reemerge?
As of now, a substantial number of altcoins are performing well, with data revealing that 20 of the top 50 cryptocurrencies have eclipsed Bitcoin’s performance since the year’s commencement. This indicates a vigorous altcoin market separate from Bitcoin’s traditional influence.
The extensive trading volume observed in November, alongside historic open interest levels, suggests a robust market environment where altcoins are being actively traded based on their fundamentals rather than merely Bitcoin dynamics.
Additionally, high volatility has led to significant liquidations of positions involving SHIB, totaling around $880 million, which underscores the ongoing complexities within the market.
Layer 2 and Chainlink partnership
The Shiba Inu project has recently partnered with Chainlink to integrate its Cross-Chain Interoperability Protocol (CCIP) into the Shibarium network. This collaboration is poised to enhance the ecosystem’s capabilities and support the proliferation of decentralized finance (DeFi) applications.
As the primary cross-chain infrastructure, this partnership opens avenues for secure token transfers and access to real-time market data. SHIB developer Kaal Dhairya has alluded to more developments on the horizon linked with this integration, hinting at more features that could significantly enhance user experience and functionality within the Shiba Inu ecosystem.
Will SHIB reach $0.1 in 2025?
Predictions remain conservative regarding SHIB reaching significant milestones, like hitting $0.1 by 2025, given the current market dynamics. With SHIB’s peak price recorded at $0.0000667, the projected rise needed for such a goal seems unattainable based on prevailing trends.
Despite this, SHIB trading volumes suggest active involvement from a diverse range of traders. However, failure to hold key support levels like the 50 EMA risks further declines, stirring caution among investors.
How much will SHIB cost in 2025?
Utilizing the Relative Strength Index (RSI) can provide traders insights into optimal trading opportunities for Shiba Inu over various timeframes. With RSI values fluctuating, currently, traders observe a target to reclaim the $0.00003 mark, which could set the stage for further gains beyond recent highs.
Source: TradingView
Significantly, SHIB’s burn rate saw a notable spike of 1,068%, leading to the destruction of over 51.7 million tokens. This momentum, coupled with a marked increase in total value locked (TVL) in Shibarium, indicates potential growth in the ecosystem’s activity.
Source: Santiment
The resilience of SHIB is evident, with over 64% of holders currently in profit, and the weekly chart reflecting a possibility for continued price appreciation leading into 2025. Analysts suggest that if the current correction concludes, SHIB’s campaign to reclaim the $0.0000300 threshold in Q1 2025 seems plausible.
Conclusion
In summary, Shiba Inu is witnessing a noteworthy resurgence, backed by a unique ecosystem strategy, community engagement, and strategic partnerships. While its journey remains marked by volatility, potential for value growth into 2025 appears promising, particularly with effective community and market strategies.
