The fundamentals of the cryptocurrency market are increasingly bullish, which means that at any moment, meme coins could suddenly experience the next wave of upward movement.
Data from shibburn.com shows that 17 million Shiba Inu (SHIB) tokens have been burned in the past 2 days. This claim sounds good, but in reality, the burned tokens are worth only about $500.
From a macro perspective, this number is quite small; as of Thursday, Shiba Inu's market cap is about $16.58 billion.
Nonetheless, in a world dominated by high-inflation fiat currencies, data from TradingEconomics shows that the M2 money supply of dollars has grown by about 50% since 2020, 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, a meme coin reliant on hype cycles, along with 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 to excite investors right now.
Shiba Inu – Will a parabolic rebound occur next?
$SHIB's latest trading price is slightly above $0.000028, within a recent range, close to its 21DMA.
The astonishing rebound that occurred earlier this month due to President Trump's victory in the U.S. presidential election has now largely faded.
However, Shiba Inu's strong rebound from the 50DMA earlier this week indicates that bulls still control this market, and price predictions remain bullish.
Given all the positive developments currently happening in the U.S., this is not surprising.
The new U.S. government will become the most cryptocurrency-friendly administration in history, and the new Congress is also very supportive of cryptocurrency, expected to provide regulatory certainty for the industry next year.
Trump is indeed boasting about how he will 'do great things with cryptocurrency' during his upcoming term.
This is a great time in the cryptocurrency space, and meme coins are among the best-performing cryptocurrencies this year, likely to perform very well in the coming months.
But that doesn't mean the price will gradually rise. Meme coins like Shiba Inu often experience rapid parabolic surges.
A cryptocurrency trader named Astekz stated that the $SHIB chart shows 'parabolic potential from now on.'
Meanwhile, CryptoBull presented a chart predicting that SHIB will soon break out of its 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 growing ecosystem, which injects a lot of real utility into $SHIB.
What is the fee for $SHIB?
So, if a parabolic rebound for Shiba Inu is imminent, how high might the price of meme coins rise?
Well, once meme coins break above the previous record level of just below $0.000090 and enter a price discovery phase, it's really anyone's guess.
However, the rebound from the 2023 low to the 2021 high at the 3.618 or 4.236 Fibonacci extension suggests a very high possibility of a tenfold increase from current levels.
This would push $SHIB's market cap to over $150 billion.
This may sound a bit absurd, but if Bitcoin reaches $200,000, its market cap would exceed $4 trillion. In that case, SHIB's market cap would only be about 4% of Bitcoin's, which is simply unbelievable considering its leading position among meme coins in the market.
In any case, the near-term outlook for the meme coin space and Shiba Inu looks very bright, even though these markets are notoriously volatile.
To achieve substantial gains, investors also need to be able to hold on during periods of rapid and severe downturns.
