Shiba Inu Price Rally on the Horizon?
The Shiba Inu (SHIB) ecosystem is showing signs of growth, potentially driving a price rally. Despite market fluctuations, SHIB performed well in 2024, with a price increase of over 100%. The popular meme coin has started 2025 on a positive note, jumping 12% in the past week.
Upcoming Launch of TREAT Token
One key factor contributing to the potential price rally is the upcoming launch of TREAT, a reward token designed to incentivize users to engage with Shiba Inu’s protocols, including the layer-2 scaling solution Shibarium. Scheduled to go live on January 14, this development is another example of the growth of SHIB’s ecosystem, which could boost investor confidence and lead to a price rally.
Reduced Selling Pressure
Another bullish element is the decrease in Shiba Inu holdings on exchanges. According to CryptoQuant’s data, the figure has dropped to levels last observed in the spring of 2021, suggesting a shift from centralized platforms to private wallets. This reduction in immediate selling pressure could contribute to a price rally.
Increased Investor Confidence
The “InTheMoney” indicator, which measures the change in the number of SHIB investors currently sitting on paper profits, has risen by 1.10% on a 24-hour scale, entering bullish territory. As of now, approximately 57% of all Shiba Inu holders are profitable, while 36% remain underwater. This is a significant improvement compared to September 2023, when almost 90% of holders were sitting on unrealized losses.
The Burning Mechanism
Shiba Inu’s burning program, launched in 2022, aims to reduce the token supply and drive the price up via scarcity. The burn rate has increased by nearly 35% in the past week, resulting in 83.4 million SHIB sent to a null address. While the USD equivalent of the stash remains insignificant, continuous efforts in this field might benefit the bulls. In 2024, over 44.6 billion SHIB (worth around $1 million) were sent to a null address.
Conclusion
The Shiba Inu ecosystem is showing signs of growth, with the upcoming launch of TREAT, reduced selling pressure, and increased investor confidence contributing to a potential price rally. The burning mechanism, which has already seen significant results in 2024, could further drive the price up. As the market continues to evolve, it will be interesting to see how these factors impact the price of SHIB.
Source: Cryptopotato.com
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