Shiba Inu (SHIB) ranks 13th on CoinMarketCap, boasting a market capitalization of over $16.8 billion.
In the past three months, SHIB has more than doubled in value, hitting a local high on Dec. 7 before dipping during a broader market correction.
However, the inherent volatility of meme coins makes price movements highly unpredictable.
SHIB price history
Launched in August 2020 as the "Dogecoin killer," Shiba Inu gained attention for its unconventional strategy of donating 50% of its supply to Ethereum creator Vitalik Buterin.
The token's popularity surged during 2021, rivaling Dogecoin and even Ethereum’s trading volumes at its peak. However, the price subsequently fell over 90%, dropping below 8 millionths of a dollar in 2023.
Despite these struggles, SHIB has shown signs of revival. Its price has climbed over 220% in recent months, surpassing 30 millionths of a dollar. While still far below its all-time high in November 2021, the current price aligns with its highs from May of the same year.
What is SHIB burn rate?
The Shiba Inu burn rate serves as a key ecosystem metric, reflecting the community's optimism about the SHIB project.
By reducing the overall token supply, it aims to boost scarcity and maintain positive sentiment, potentially influencing SHIB's price.
With transactions on Shibarium, SHIB is used to pay gas fees, and a portion is burned, contributing to this deflationary mechanism. While the strategy aligns with long-term value growth, significant price impacts would require larger-scale burns to create more dramatic effects.
Shiba Inu and Bitcoin correlation
The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low. However, altcoins, including SHIB, often react to Bitcoin's price movements, especially during bullish phases driven by institutional investments.
Historically, the correlation has been weak since the last bullish cycle.
According to data from Ark Invest, since the last cycle low, Bitcoin's price has increased 5.72 times, closely mirroring the 5.18x and 5.93x growth seen at equivalent 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 potentially increase 15.4 times to around $243,000 during the next year, approximately 880 days after the November 2021 cycle low.
Altcoins are likely to follow BTC footsteps in the beginning of 2025.
Will altcoin season reemerge?
Since the start of the year, 20 of the top 50 crypto assets by market cap have outpaced Bitcoin’s gain.
November’s trading volume reaching a yearly high and open interest hitting historic levels. Recent data from CryptoQuant indicates that altcoin trading volume is not driven by BTC pairs.
Alt season is no longer defined by asset rotation from #Bitcoin.
— Ki Young Ju (@ki_young_ju) December 2, 2024
The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.
Stablecoin liquidity better explains the altcoin markets. pic.twitter.com/riejM7oXyk
This suggests genuine market growth rather than a shift of capital from Bitcoin to altcoins, potentially signaling that this altcoin season may not wait for Bitcoin's price to stabilize.
Recent heightened volatility has led to significant liquidations, particularly in leveraged positions involving SHIB. A liquidation wave, causing $880 million in losses, highlights ongoing market deleveraging, further pressuring assets like SHIB downward.
Layer 2 and Chainlink partnership
The Shiba Inu ecosystem takes a major step forward with the integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) into its Shibarium network. This partnership designates CCIP as the primary cross-chain infrastructure for the ecosystem,
The collaboration paves the way for expanded DeFi applications and strengthens Shiba Inu's role in the broader blockchain landscape.
SHIB developer Kaal Dhairya hinted on X that even more exciting updates are forthcoming:
Consider @chainlink as the first Infinity Stone set into the gauntlet. On my way to restore the balance and vaporize the fudders. Keep watching—there are more stones, and bigger moves, on the way.🦴🔥 #SHIBARMY #SHIB #LEASH #BONE #TREAT https://t.co/p5uzNNWwyI pic.twitter.com/6DDSmMfaGD
— Kaal (@kaaldhairya) December 19, 2024
The integration of Chainlink into Shibarium introduces advanced functionalities such as secure cross-chain token transfers and real-time, high-frequency market data access.
Over the past year, Shiba Inu has made significant strides with Shibarium, its Layer-2 scaling solution. With the adoption of usable products and staking, the project aims to reach a major milestone in the crypto ecosystem, potentially driving a price surge.
Overall, Shiba Inu positions itself for a chance to become a top-tier cryptocurrency, with substantial value growth on the horizon.
Will SHIB reach $0.1 in 2025?
The short answer is “no.” SHIB's price, which peaked at $0.0000667 in October 2021, shows no signs of a potential 149,320.59% rise during this cycle, based on current market trends and burn rates.
SHIB's trading volume of $2.28 billion, though slightly decreased, highlights active engagement from both whales and retail traders. However, a failure to reclaim the 50 EMA as support may push the price toward testing lower levels, with the 200 EMA at $0.00002044 serving as a potential stabilization point.
Absent a broader market recovery or renewed buying momentum, SHIB faces the risk of further declines.
How much will SHIB cost in 2025?
The Relative Strength Index (RSI) is a straightforward yet effective tool for identifying optimal entry or exit points in Shiba Inu (SHIB) trading over midterm or long-term periods.
The RSI ranges between 0 and 100. Typically, a reading above 70 indicates the asset is "overbought," signaling a potential pullback, while a reading below 30 suggests it is "oversold," implying a possible rebound. This makes RSI a valuable indicator for gauging market momentum and timing trades effectively.
In a cryptocurrency uptrend, Shiba Inu's RSI typically remains above 30 and often surpasses 70, reflecting strong buying momentum. Conversely, during a downtrend, the RSI rarely exceeds 70 and frequently drops to 30 or below, signaling weaker market conditions.
Currently, market sentiment indicates SHIB's immediate target is to reclaim the $0.00003 level. Achieving this milestone could pave the way for an extended rally, potentially pushing its weekly high beyond $0.000033.
Notably, Shiba Inu's burn rate spiked by an impressive 1,068%, resulting in the destruction of over 51.7 million tokens. Additionally, Shibarium's total value locked (TVL) has surged by 850% since September, reflecting growing ecosystem activity.
Despite recent challenges, 64% of SHIB holders remain in profit, underscoring the community's resilience and Shiba Inu's strong presence in the meme coin sector.
On the larger timeframe, the weekly chart signals potential price growth heading into 2025. With December's correction behind, SHIB has a strong chance of reclaiming the $0.0000300 level in Q1 2025.