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.
What’s Driving the Potential Rally?
Several factors are indicating that the price of SHIB may be poised for a significant move to the upside. One of the key drivers is the upcoming launch of TREAT, a reward token that will incentivize users to engage with Shiba Inu’s protocols, including the layer-2 scaling solution Shibarium. The token is set to go live on January 14, which could boost investor confidence and lead to a price rally.
Another important factor 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, suggesting a shift from centralized platforms toward private wallets and reduced immediate selling pressure.
Burning Mechanism: Reducing Supply and Enhancing Value
The burning mechanism, launched in 2022, aims to reduce the massive 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 this field might benefit the bulls.
In 2024, over 44.6 billion SHIB (worth around $1 million) were burned, highlighting consistent efforts to reduce supply and enhance value.
Investor Sentiment: Are We Seeing a Shift?
The “InTheMoney” indicator, which measures the change in the number of SHIB investors currently sitting on paper profits, 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 significant improvement compared to the stats witnessed in September 2023, when almost 90% of those who had distributed funds to the self-proclaimed Dogecoin-killer were sitting on unrealized losses.
Conclusion
With the upcoming launch of TREAT, reduced Shiba Inu holdings on exchanges, and the burning mechanism in place, the stage is set for a potential price rally. While there are no guarantees in the cryptocurrency market, these factors indicate that the bulls may be gaining momentum. As the market continues to evolve, it will be essential to monitor these developments and adjust our expectations accordingly.
FAQs
Q: What is TREAT?
A: TREAT is a reward token that will incentivize users to engage with Shiba Inu’s protocols, including the layer-2 scaling solution Shibarium.
Q: When is TREAT set to go live?
A: TREAT is set to go live on January 14.
Q: What is the burning mechanism?
A: The burning mechanism is a process launched in 2022 to reduce the massive token supply and drive the price up via scarcity.
Q: How has the burning rate changed recently?
A: The burn rate has increased by nearly 35% in the past week, resulting in 83.4 million SHIB sent to a null address.
Q: What is the “InTheMoney” indicator?
A: The “InTheMoney” indicator measures the change in the number of SHIB investors currently sitting on paper profits.
Q: How has investor sentiment changed recently?
A: Investor sentiment has improved significantly, with approximately 57% of all Shiba Inu holders now profitable, while 36% remain underwater.
