3 Reasons Why the Shiba Inu (SHIB) Price May Rally in the Near Future
2025-01-07
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TL;DR
New Bull Run on the Horizon?
Despite the severe fluctuations, Shiba Inu (SHIB) performed quite well last year, experiencing a price increase of over 100%. The popular meme coin started 2025 on the right foot, jumping by 12% in the past week.
According to some important factors, the price may just be heating up for a much more substantial move to the upside. One of those is the upcoming launch of TREAT. The reward token, which will incentivize users to engage with Shiba Inu’s protocols, including the layer-2 scaling solution Shibarium, will officially go live on January 14.
This development is another example of the growth of SHIB’s ecosystem in the past few years. It could boost investor confidence, leading to more people jumping on the bandwagon and a subsequent price rally for the second-largest meme coin.
The next bullish element is the amount of Shiba Inu stored on exchanges. CryptoQuant’s data shows that the figure has recently dropped to levels last observed in the spring of 2021. This suggests a shift from centralized platforms toward private wallets, meaning reduced immediate selling pressure.
Lastly, we will focus on the “InTheMoney” indicator (which measures the change in the number of SHIB investors currently sitting on paper profits). According to IntoTheBlock, it has risen by 1.10% on a 24-hour scale, entering bullish territory.
As of the moment of this writing, approximately 57% of all Shiba Inu holders are profitable, while 36% remain underwater. This is a serious improvement compared to the statswitnessedin September 2023. Back then, almost 90% of those who had distributed funds to the self-proclaimed Dogecoin-killer were sitting on unrealized losses.Bonus: The Burning Mechanism
Another factor that could contribute to a potential SHIB rally is the meme coin’s burning program. To the uninitiated ones, the team behind the meme coin launched the mechanism in 2022, aiming to reduce the tremendous token supply and drive the price up via scarcity.
The burn rate has increased by nearly 35% in the past week, resulting in 83.4 million SHIB sent to a null address. The USD equivalent of the stash remains insignificant, but continuous efforts in the field might benefit the bulls.
As CryptoPotato reported, in 2024, over 44.6 billion SHIB (worth around $1 million) were sent to a null address.