Shiba Inu (SHIB) ranks 13th on CoinMarketCap, with a market capitalization of over $16.8 billion.
Over the past three months, the value of SHIB has more than doubled, reaching a local high on December 7 before falling during a broader market correction.
However, the inherent volatility of meme coins makes price movements very unpredictable.
SHIB Price History
Launched in August 2020 as the “Dogecoin killer,” Shiba Inu gained attention for its unconventional strategy of donating 50% of its supply to Ethereum creator Vitalik Buterin.
The token’s popularity surged in 2021, rivaling the trading volumes of Dogecoin and even Ethereum at its peak. However, the price then fell by more than 90%, falling below $8 million in 2023.
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Despite these difficulties, the SHIB has shown signs of revival. Its price has climbed more than 220% in recent months, exceeding 30 millionths of a dollar. Although still well below its all-time high from November 2021, the current price aligns with its highs from May of the same year.
What is SHIB burn rate?
Shiba Inu burn rate is a key ecosystem metric, reflecting community optimism about the SHIB project.
By reducing the overall token supply, it aims to increase scarcity and maintain positive sentiment, potentially influencing the price of SHIB.
With transactions on Shibarium, SHIB is used to pay gas fees, and some of it is burned, contributing to this deflationary mechanism. Even if the strategy aligns with long-term value growth, significant price impacts would require larger-scale burns to create more dramatic effects.
Shiba Inu and Bitcoin Correlation
The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low. However, altcoins, including SHIB, often react to Bitcoin price movements, particularly during bullish phases driven by institutional investments.
Historically, the correlation has been low since the last bull cycle.
According to data According to Ark Invest, since the last cycle low, the price of Bitcoin has increased 5.72 times, closely mirroring the 5.18x and 5.93x growth seen at equivalent points during the 2015-2018 and 2018- cycles. 2022, respectively.
If Bitcoin continues to follow the average trajectory of these two cycles, its price could potentially rise 15.4 times to around $243,000 over the next year, around 880 days after the November 2021 cycle low.
Altcoins will likely follow in BTC’s footsteps in early 2025.
Will altcoin season reappear?
Since the start of the year, 20 of the top 50 crypto assets by market capitalization have surpassed Bitcoin’s gains.
Trading volume in November hit a yearly high and open interest reached historic levels. Recent data from CryptoQuant indicates that altcoin trading volume is not determined by BTC pairs.
This suggests true market growth rather than a capital shift from Bitcoin to altcoins, potentially signaling that this altcoin season may not wait for the Bitcoin price to stabilize.
The recent increased volatility has led to significant liquidations, particularly in leveraged positions involving SHIB. A wave of liquidations, resulting in losses of $880 million, highlights the current deleveraging of the market, putting further pressure on assets like SHIB.
Layer 2 and Chainlink partnership
The Shiba Inu ecosystem hits a major milestone with the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into its Shibarium network. This partnership designates CCIP as the leading cross-chain infrastructure in the ecosystem,
The collaboration paves the way for expanded DeFi applications and strengthens Shiba Inu’s role in the broader blockchain landscape.
SHIB developer Kaal Dhairya hinted on X that even more exciting updates are coming:
Chainlink’s integration into Shibarium introduces advanced features such as secure cross-chain token transfers and access to real-time, high-frequency market data.
Over the past year, Shiba Inu has made significant progress with Shibarium, its Layer-2 scaling solution. With the adoption of usable products and staking, the project aims to achieve a major milestone in the crypto ecosystem, potentially leading to a price surge.
Overall, Shiba Inu is positioning itself to have a chance to become a top cryptocurrency, with substantial growth in its value on the horizon.
Will SHIB reach $0.1 in 2025?
The short answer is “no”. SHIB price, which peaked at $0.0000667 in October 2021, shows no signs of a potential upside of 149,320.59% during this cycle, based on current market trends and trading rates. consumption.
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SHIB’s trading volume of $2.28 billion, although slightly down, highlights the active engagement of whales and retail traders. However, failure to reclaim the 50 EMA as support could push the price towards testing lower levels, with the 200 EMA at $0.00002044 serving as a potential stabilization point.
Absent a broader market recovery or renewed buying momentum, SHIB faces the risk of further declines.
How much will SHIB cost in 2025?
The Relative Strength Index (RSI) is a simple but effective tool for identifying optimal entry or exit points in trading Shiba Inu (SHIB) over medium to long term time frames.
The RSI ranges between 0 and 100. Typically, a reading above 70 indicates that the asset is “overbought”, signaling a potential pullback, while a reading below 30 suggests that it is “oversold”, which implies a possible rebound. This makes the RSI a valuable indicator for assessing market dynamics and effectively timing trades.
In an uptrend in cryptocurrencies, the Shiba Inu RSI generally remains above 30 and often exceeds 70, reflecting strong buying momentum. Conversely, during a downtrend, the RSI rarely rises above 70 and frequently falls to 30 or lower, signaling weaker market conditions.
Currently, market sentiment indicates that SHIB’s immediate objective is to reclaim the $0.00003 level. Reaching this milestone could pave the way for an extended rally, potentially pushing its weekly high past $0.000033.
Notably, Shiba Inu’s burn rate soared by an impressive 1,068%, resulting in the destruction of over 51.7 million tokens. Additionally, Shibarium’s total value locked (TVL) has surged 850% since September, reflecting growing ecosystem activity.
Despite recent challenges, 64% of SHIB holders remain profitable, highlighting the resilience of the community and the strong presence of Shiba Inu in the coin industry.
On a broader time frame, the weekly chart signals potential price growth heading into 2025. With the December correction behind, SHIB has a high chance of regaining the $0.0000300 level in Q1 2025.