As a seasoned crypto investor with years of experience navigating the volatile digital asset market, I must say that the recent surge in Shiba Inu’s price has caught my attention. While I am always cautiously optimistic about new developments in the crypto world, I believe that the sustainability of such a rally depends on several factors.
TL;DR
- Shiba Inu’s price rose substantially recently, but a major rally will depend on favorable market conditions and increased SHIB burning.
55% of SHIB holders are now in profit, showing a positive shift.
How Realistic Is Such a Scenario?
Recently, Shiba Inu has been grabbing attention due to a 35% price increase over the past week. This surge in value has pushed its market capitalization beyond $11.5 billion, positioning it as the fourteenth-largest cryptocurrency. However, it remains second in line among meme coins, with Dogecoin still leading the pack.
We chose to inquire about the sustainability of that rally and whether the meme coin might lose a zero from its value by New Year’s Eve, when asked.
The well-known AI chatbot didn’t dismiss that scenario. Instead, it suggested that a significant upward trend (bull run) might be contingent upon several elements. These factors could include positive market sentiment, increased use and practical application of Shibarium, as well as an escalation in the SHIB burning rate.
In a recent spotlight, Shibarium, the layer-2 scaling solution, has been making waves as the total blocks processed on its network surpassed 7 million. Furthermore, the number of transactions stands at approximately 420 million, while the number of wallet addresses is nearing the 2 million mark.
The protocol was launched officially in August. Its main purpose is to nurture the growth of the Shiba Inu ecosystem, by focusing on scalability, boosting speed, and reducing transaction fees. To stay updated about the ecosystem, be sure to follow our Shibarium news.
As a crypto investor, I’ve been closely following the surge in SHIB‘s burning mechanism. According to recent reports from CryptoPotato on September 27, the burn rate experienced an astounding increase of approximately 34,000%, leading to over 1.8 billion tokens being sent to a null address.
Persistent work in this area could lead to a significant decrease in the circulating supply of the meme coin. This reduction might cause an uptick in its price (assuming demand remains stable or grows).
It is worth mentioning that erasing a zero from SHIB’s value would require its market cap to pump to a whopping $115 billion. As of the moment, Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are the only three cryptocurrencies whose capitalization is higher than that.
SHIB Holders Are Slowly Escaping the Red Zone
It’s not surprising that the recent surge in value of the popular meme coin has left its investors reaping benefits. Data from IntoTheBlock reveals that a significant number, approximately 55%, are currently enjoying some level of profit, while about 43% are still experiencing losses.
In September 2023, the outlook for SHIB became significantly more grim as its price underwent a significant decline. During this period, about 90% of its investors found themselves at a loss.
As an analyst, I’ve found that the widely recognized meme coin has a robust and long-standing community of investors and supporters, many of whom have been with it for over a year. Interestingly, data from the platform reveals that approximately 80% of Shiba Inu token holders jumped aboard this crypto journey more than a year ago. A further 19% joined the movement within the last twelve months, while only 2% have recently hopped on board in the past 30 days.
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2024-09-28 10:08