Shiba Inu (SHIB), the 17th largest cryptocurrency by market capitalization, has made remarkable progress since its modest beginnings as a meme coin.
Once dismissed as a speculative token with limited utility, SHIB has established itself in the cryptocurrency space through continuous development and strong community-driven efforts.
Investor interest in SHIB has recently been reignited by a sharp increase in the token’s burn rate. Millions of SHIB tokens have been permanently removed from circulation, fueling optimism about the potential impact of reduced supply alongside ongoing ecosystem advancements.
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As these developments unfold, investors are left pondering whether the meme coin can defy expectations and achieve the ambitious $0.01 milestone by 2025.
Shiba Inu’s journey so far
In 2024, Shiba Inu experienced a volatile journey in the cryptocurrency market. After a relatively flat start to the year, the token skyrocketed by 259.30%, climbing from $0.0000101 to a yearly high of $0.00003629.
However, this momentum was short-lived as SHIB retreated to $0.00001316 by September. Currently trading at $0.00002225, SHIB has suffered a 7.5% weekly decline, cutting its monthly returns by 11%. Despite the setback, the token boasts a remarkable 114% gain year-to-date (YTD).
The ecosystem’s expansion
The launch of Shibarium, a Layer-2 blockchain, has significantly improved its scalability and transaction efficiency. Shibarium’s rapid adoption is evident in its milestone of surpassing 700 million total transactions as of December 25, just months after its launch last summer.
Accompanying this milestone are several ecosystem upgrades, including a revamped user interface for better compatibility with wallets like MetaMask, Coinbase Wallet, and Trust Wallet.
Enhancing its appeal further, the project has announced plans to develop a stablecoin pegged at $0.01, aiming to broaden SHIB’s utility and expand its market presence.
Adding to the positive sentiment, SHIB’s burn mechanism has gained significant traction. On December 25 alone, 6.26 million SHIB tokens were permanently removed from circulation, marking a 97% increase in the burn rate. This aggressive reduction in supply has bolstered investor optimism, aligning with the classic economic principle of supply and demand.
The anticipated release of the TREAT token further adds to the bullish sentiment, with TREAT designed to serve as the reward token within the Shiba Inu ecosystem, offering multifaceted utility.
Technical analysis and market sentiment
Shiba Inu presents mixed signals from a technical perspective, with recent indicators suggesting potential upward momentum.
The TD Sequential indicator has flashed a buy signal, hinting at a possible trend reversal. Analyst Ali Martinez has identified resistance at $0.000026, with SHIB possibly targeting $0.000029 if buying pressure intensifies.
Adding to the optimism, analyst Javon Marks has highlighted SHIB’s bullish technical setup, suggesting the token could surge to $0.000081 under favorable conditions. Such a move would represent a 3.33-fold increase, translating to a staggering 234% gain from its current levels, reinforcing a cautiously optimistic outlook for the token.
At the same time, market sentiment surrounding SHIB remains cautiously optimistic, with notable activity from major investors and whales. Such significant whale movements suggest renewed interest from large investors.
However, data retrieved by Finbold from the crypto on-chain analysis platform IntoTheBlock on December 25 shows that 55% of Shiba Inu holders are in profit, 8% are at breakeven, and 37% are at a loss.
This distribution highlights the potential for increased selling pressure as profitable holders may look to capitalize on their gains, while those at breakeven or in loss may choose to hold amid market uncertainties.
The road to 1 cent
While Shiba Inu’s ecosystem developments and technical indicators show promise, reaching $0.01 by 2025 remains an extremely ambitious goal. Significant ecosystem advancements, increased adoption, and a strong bull market will be essential to achieving such a target.
For now, SHIB’s realistic milestones are focused on breaking resistance levels like $0.000026 and $0.000029, with long-term growth dependent on sustained efforts by its community and developers.
Investors should approach with caution, balancing the coin’s speculative nature against its evolving ecosystem.
Featured image via Shutterstock
