Shiba Inu (SHIB) is ranked 13th on CoinMarketCap, and boasts a market capitalization of over $16.8 billion.

In the past three months, SHIB has more than doubled in value, reaching a local high on December 7 before falling during a broader market correction.

However, the inherent volatility of meme currencies makes price movements highly unpredictable.

SHIB price history

Launched in August 2020 as the “Dogecoin killer,” the Shiba Inu attracted attention for its unorthodox strategy of donating 50% of its supply to Ethereum creator Vitalik Buterin.

The token has soared in popularity throughout 2021, rivaling Dogecoin and even Ethereum's trading volumes at its peak. However, the price then fell by more than 90%, falling to less than 8 millionths of a dollar in 2023.

Despite these difficulties, SHIB has shown signs of recovery. Its price has risen more than 220% in recent months, exceeding 30 millionths of a dollar. While still well below its all-time high in November 2021, the current price is in line with the highs recorded in May of the same year.

What is the SHIB burn rate?

The Shiba Inu burn rate is a key measure of the ecosystem, reflecting the community's optimism about the SHIB project.

By reducing the overall supply of tokens, it aims to promote scarcity and maintain positive sentiment, which could impact the price of SHIB.

Through transactions on Shibarium, SHIB is used to pay gas fees, and a portion of it is burned, contributing to this deflationary mechanism. While the strategy is aligned with long-term value growth, large impacts on prices would require large-scale burns to create more dramatic effects.

Shiba Inu and Bitcoin relationship

The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low. However, altcoins, including SHIB, often react to Bitcoin price movements, especially during bullish phases driven by institutional investments.

Historically, the correlation has been weak since the last bull cycle.

according to Data From Ark Invest, since the last cycle low, Bitcoin has risen 5.72x, 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 path of these two cycles, its price will likely rise 15.4 times to around $243,000 over the next year, about 880 days after the November 2021 cycle low.

Altcoins are likely to follow in BTC's footsteps at the beginning of 2025.

Will altcoin season come again?

Since the beginning of the year, 20 of the top 50 crypto assets by market cap have surpassed Bitcoin's gains.

November trading volume reached a yearly high and open interest rates reached historic levels. recently Data From CryptoQuant points out that altcoin trading volume does not depend on BTC pairs.

This indicates real market growth rather than a shift of capital from Bitcoin to altcoins, which may indicate that this altcoin season may not wait for the price of Bitcoin to stabilize.

Recent increased volatility has led to significant liquidations, particularly in leveraged positions including SHIB. The wave of liquidations, which caused losses worth $880 million, highlights the ongoing deleveraging in the market, which is increasing downward pressure on assets such as SHIB.

Layer 2 and Chainlink partnership

The Shiba Inu ecosystem is taking a big step forward by integrating Chainlink's Cross-Chain Interoperability Protocol (CCIP) into its Shibarium network. This partnership defines CCIP as the core cross-chain infrastructure for the ecosystem,

This collaboration paves the way for expanding DeFi applications and strengthens the Shiba Inu's role in the broader blockchain landscape.

SHIB developer Kaal Dhairya hinted on X that there are more exciting updates to come:

Chainlink integration into Shibarium offers advanced functionality such as secure cross-chain token transfers and access to real-time high-frequency market data.

Over the past year, the Shiba Inu has made great strides with Shibarium, their second layer measuring solution. By adopting usable and staking products, the project aims to reach a major milestone in the cryptocurrency ecosystem, which could lead to higher prices.

Overall, Shiba Inu is positioning itself for a chance to become a top-tier cryptocurrency, with significant 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% rally during this cycle, based on current market trends and burn rates.

SHIB's trading volume of $2.28 billion, although slightly lower, highlights active participation from both whales and retail traders. However, failure to reclaim the 50 EMA as support may push the price towards testing lower levels, with the 200 EMA at $0.00002044 acting as a potential stabilization point.

In the absence of 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 and effective tool for identifying ideal entry or exit points in trading the Shiba Inu (SHIB) over medium or long-term periods.

The Relative Strength Index ranges from 0 to 100. Typically, a reading above 70 indicates that the asset is “overbought,” indicating a potential pullback, while a reading below 30 indicates “oversold,” meaning a potential rebound. This makes the RSI a valuable indicator for effectively measuring market momentum and timing trades.

In a crypto bullish trend, the Shiba Inu's RSI remains above 30 and often exceeds 70, reflecting strong buying momentum. Conversely, during a downtrend, the RSI rarely exceeds 70 and frequently drops to 30 or below, indicating weaker market conditions.

Currently, market sentiment suggests that SHIB's immediate target is to reclaim the $0.00003 level. Achieving this milestone could pave the way for an extended rally, which could push the weekly high beyond $0.000033.

Notably, the Shiba Inu burn rate increased by a staggering 1,068%, resulting in the destruction of more than 51.7 million tokens. In addition, the total value of locked chybarium (TVL) has increased by 850% since September, reflecting increased ecosystem activity.

Despite recent challenges, 64% of SHIB holders are still profitable, underscoring the community's resilience and the Shiba Inu's strong presence in the meme sector.

On the larger time frame, the weekly chart indicates potential price growth heading into 2025. With the December correction delayed, SHIB has a strong chance of reclaiming the $0.0000300 level in Q1 2025.