The fundamentals of the cryptocurrency market are increasingly bullish, which means that at any moment, meme coins could suddenly experience the next round of increases.
Data provided by shibburn.com shows that 17 million Shiba Inu (SHIB) tokens were burned in the past 2 days. This statement sounds good, but in reality, the burned tokens are worth only about $500.
From a macro perspective, this number is quite small, with Shiba Inu's market capitalization approximately at $16.58 billion as of Thursday.
Nevertheless, in a world dominated by high-inflation fiat currencies, data from TradingEconomics shows that since 2020, the M2 money supply in dollars has increased by about 50%, reminding us of the benefits of non-inflationary cryptocurrencies.
Of course, protecting against inflation is not the true mission of meme coins like Shiba Inu; that falls more into the realm of Bitcoin (BTC).
Shiba Inu (SHIB) is a more speculative bet, relying on hype cycles and its growing and highly focused community of followers, investors, and enthusiasts.
Although the latest deflation data released by shibburn.com is unlikely to impact Shiba Inu, there are still many other reasons for investors to feel excited.
Shiba Inu - Will there be a parabolic bounce next?
$SHIB's latest trading price is slightly above $0.000028, within its recent range, close to its 21DMA.
At the beginning of November, the market experienced a stunning rebound triggered by President Trump's victory in the U.S. presidential election, but its momentum has since largely subsided. However, earlier this week, signs of Shiba Inu coin rebounding strongly from the 50-day moving average (50DMA) indicated that bullish forces in the market still dominate, and the price trend remains positive.
Given that the U.S. is currently experiencing a series of positive developments, this market performance is not surprising. The new U.S. government has demonstrated unprecedented support for cryptocurrencies and is expected to become the most crypto-friendly government in history. At the same time, the new Congress also holds a positive stance on cryptocurrencies, which is expected to bring regulatory certainty to the industry in the coming year, undoubtedly injecting a strong dose of confidence into the cryptocurrency market.
President Trump himself has repeatedly emphasized that he will 'achieve great things with cryptocurrency' during his next term, a statement that further boosts market confidence in the future development of cryptocurrencies.
This is a great time in the cryptocurrency space, and meme coins are one of the best-performing areas in cryptocurrency this year, likely to perform very well in the coming months.
But this does not mean that prices will gradually rise. Meme coins like Shiba Inu often experience rapid parabolic increases.
A cryptocurrency trader named Astekz stated that the $SHIB chart shows 'parabolic potential from now on.'
Meanwhile, CryptoBull showcased a chart, predicting that SHIB will soon break through the downtrend from its 2021 peak.
Other X users are eager to point out why Shiba Inu is likely to be one of the major winners in any future meme season.
This includes the massive Shiba Inu community and its extensive and evolving ecosystem, which injects a lot of real utility into $SHIB.
What is the fee for $SHIB?
If Shiba Inu is about to experience a parabolic rebound, then the price ceiling of meme coins will be an intriguing topic. Once meme coins can break through their historical highs (slightly below $0.000090) and successfully enter the price discovery phase, their subsequent trends will be full of uncertainties and difficult to predict accurately.
However, if we look at the process of meme coins rebounding from the 2023 low to the 2021 high from a technical analysis perspective and apply the theory of Fibonacci extensions (such as 3.618 or 4.236 times extensions), we can find that meme coins have enormous potential to increase more than tenfold from the current price level.
If this increase is realized, it would propel SHIB's market cap to over $150 billion, a figure that may sound staggering. However, it is worth noting that if Bitcoin can reach a high of $200,000, its market cap would easily surpass $4 trillion. In such a market environment, even if SHIB's market cap reaches $150 billion, it would only account for about 4% of Bitcoin's market cap, which is not entirely impossible for SHIB as the leading meme coin in the market.
Of course, we must be soberly aware that the meme coin market is known for its extreme volatility, and investing in it carries significant risks. However, the recent outlook for meme coins and Shiba Inu seems quite optimistic. For investors seeking huge returns, the key is whether they can maintain composure amid rapid market fluctuations and hold on until profits are realized.