The Shiba Inu (SHIB) price is struggling to reach the $0.0001 level. The decline in the burn rate is negatively affecting the value of SHIB. Analysts state that the price target set for 2025 is possible.
Shiba Inu traded sideways on the first day of the new year. As of January 1, the token was up only 1%, failing to even approach the $0.0001 level. SHIB’s performance has led market participants to reconsider their expectations for the token’s future price movements.
The decrease in SHIB’s burn rate is also drawing attention. According to the latest data, a total of 55.54 million tokens were burned last week, but this rate remained significantly lower than in the past period. The decrease in the burn rate does not sufficiently reduce the total supply in circulation, which contributes to the stagnant trend in SHIB’s price. Although a 55% increase in the daily burn rate was recorded, this rate fell well short of market expectations. Low burn activity prevents the token price from reaching a significant level. Experts say that this slowdown in the burn rate could have a major impact on Shiba Inu’s long-term performance.
The general pressures in the cryptocurrency market are also among the other factors affecting the price of SHIB. The US Federal Reserve’s tough stance on interest rate cuts negatively affects the risk appetite of market participants. In addition, low trading volume during the holiday season contributes to market volatility.
SHIB price is trading at $0.00002015 at the time of writing. According to the last 24-hour data, the token is up 0.4%. The lowest and highest prices during the day were recorded at $0.00002052 and $0.00002178, respectively.
Market experts say that the Metaverse projects and the launch of the TREAT token are important developments for the future of Shiba Inu. These steps create a positive atmosphere among the community. An analysis by CoinGape predicts that SHIB could reach $0.0001 in January 2025 if the market recovers.
The price performance of Shiba Inu continues to be shaped by market dynamics and ecosystem developments. Investors are advised to create their strategies by taking these elements into consideration.