2025 Shiba Inu (SHIB) Price Revelation: Surge or Plunge?
Shiba Inu debuted in August 2020 as the 'Dogecoin Killer', gaining attention for its unique strategy of donating half of its supply to Ethereum founder Vitalik Buterin.
In 2021, the token gained immense popularity, with trading volumes rivaling Dogecoin and Ethereum, but its price subsequently plummeted by over 90%, falling below 8 millionths of a dollar by 2023. Nevertheless, SHIB has shown signs of recovery, with a price increase of over 220% in recent months, surpassing 30 millionths of a dollar. Although this is still far from the historical high in November 2021, it has returned to the level of the peak in May of the same year.
The Shiba Inu burn rate is a key indicator of the ecosystem, reflecting the community's optimism about the SHIB project.
By reducing the overall token supply, it aims to enhance scarcity and maintain positive sentiment, which could potentially impact the price of SHIB. In transactions on Shibarium, SHIB is used to pay gas fees, a portion of which is burned, thus promoting this deflationary mechanism.
While this strategy aligns with long-term value growth, significant price impacts require larger-scale burns to achieve more notable effects.
The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low. However, altcoins, including SHIB, typically respond to Bitcoin's price movements, especially during bullish phases driven by institutional investment.
Historically, this correlation has been weak since the last bull market cycle.
Since the last cycle's low point, Bitcoin's price has increased by 5.72 times, closely matching the increases of 5.18 times and 5.93 times at similar points in the 2015-2018 and 2018-2022 cycles, respectively.
If Bitcoin continues to follow the average trajectory of these two cycles, its price could rise 15.4 times to around $243,000 next year, approximately 880 days after the cycle low in November 2021.
