Shiba Inu (SHIB) is once again gaining attention in the crypto space, with its market cap exceeding $16.8 billion, attracting investor interest. Recent price increases suggest that SHIB is regaining interest from both individual and institutional investors, with its value doubling in the last three months.$SHIB
“SHIB’s resurgence reflects the momentum that alternative cryptocurrencies are gaining against Bitcoin.” This article highlights the Shiba Inu’s rise to prominence by examining its recent recovery, burn rate, market correlation with Bitcoin, and future price predictions.
The Shiba Inu was launched in August 2020 as the “Dogecoin killer” and quickly gained popularity by donating half of its supply to Ethereum founder Vitalik Buterin. This unusual move has garnered a large following, and SHIB’s trading volume has attracted attention, sometimes surpassing established cryptocurrencies like Ethereum.
After a phenomenal rally in 2021, SHIB fell by over 90% to below 8 million in early 2023. However, there has been a significant recovery in the last few months, with SHIB up over 220% and trading above 30 million. While this increase is still well below the all-time high of 0.0000667 in November 2021, the price action is promising.
The Shiba Inu burn rate is an important indicator that reflects the community’s commitment and enthusiasm for the ecosystem. This rate aims to increase the scarcity and potential value of the token by reducing its supply. SHIB is used for transaction fees on Shibarium, and tokens are burned during these transactions, reinforcing the deflationary strategy. However, these burns need to be done on a larger scale and with wider participation to have a significant impact on the price.
While the correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low, SHIB typically tracks Bitcoin’s price movements during bull seasons, especially when institutional investment drives market sentiment.
In the last bull cycle, the price of Bitcoin increased by approximately 5.72 times. Following past cycles, the price of Bitcoin may experience further increases and this could also affect alternative cryptocurrencies in 2025.
Many altcoins have been performing well recently, with data showing that 20 of the top 50 cryptocurrencies have outperformed Bitcoin since the beginning of the year, suggesting a dynamic altcoin market independent of Bitcoin’s influence.
The high trading volume and historical open interest levels observed in November suggest that altcoins are actively traded based on fundamentals. However, significant liquidation of SHIB-related positions, reaching approximately $880 million, highlights the complexities in the market.
Shiba Inu has partnered with Chainlink to integrate Cross-Chain Interoperability Protocol (CCIP) into the Shibarium network. This partnership aims to help the proliferation of decentralized finance (DeFi) applications and increase the capabilities of the ecosystem. This integration provides secure token transfers and access to real-time market data. Shiba Inu developer Kaal Dhairya hints at further developments regarding this integration, and new features are expected to significantly improve the user experience in the Shiba Inu ecosystem.
Looking at the current market dynamics, SHIB reaching a high value of $0.1 in 2025 seems like a rather cautious prediction. SHIB’s highest price is currently around $0.0000667, and a significant price increase from this level seems unlikely given the current trends. Nevertheless, SHIB’s trading volumes are actively increasing, with various traders actively participating. However, if critical support levels such as the 50 EMA cannot be maintained, there may be a risk of further declines, which may force investors to adopt a cautious approach.
The Relative Strength Index (RSI) can help traders identify trading opportunities for Shiba Inu across different time frames. With RSI indicators fluctuating, traders are targeting the $0.00003 level, indicating the potential for additional gains beyond the recent highs.
Another important development is the significant increase in SHIB’s burn rate. This rate increased by 1,068% and more than 51.7 million tokens were burned. This, combined with the increase in the total value locked (TVL) in Shibarium, points to the potential growth of the ecosystem. SHIB’s resilience is remarkable. As of now, more than 64% of investors have made profits, and weekly charts indicate the possibility of a continued price increase heading into 2025. If the current correction ends, analysts see SHIB reaching $0.0000300 in Q1 2025 as a reasonable target.