SHIB Yet to Unveil Its Potential?
The second-largest meme coin in terms of market capitalization witnessed a major rally in Q1, 2024, when its price pumped to as high as $0.00003629. Since then, though, it has been on a downtrend, currently trading at around $0.00001364 (a 62% decline compared to the yearly peak).
The SHIB community might be eagerly expecting a new resurgence in the near future, so we decided to ask ChatGPT if such a development is in the cards before the end of 2024.
The AI-powered chatbot said it’s difficult to predict that scenario with certainty, outlining several important factors that might play a role, the first of which is the advancement of Shibarium.
The layer-2 scaling solution is specifically designed to provide a scalable, low-cost, and efficient infrastructure that could foster the development of the Shiba Inu ecosystem. The protocol underwent some important upgrades over the past months, and some industry participants believe its further progress can benefit the SHIB price.
“If Shibarium gains traction and sees increased adoption, it could boost demand for SHIB, as users would need the token for transaction fees and interacting with the network,” ChatGPT stated.
The next factor on the list is Shiba Inu’s burning program whose ultimate goal is to reduce the huge circulating supply of the meme coin, making it scarcer and potentially more valuable in time (should demand stays the same or heads north).
As CryptoPotato reported, more than 680 million SHIB tokens were burned in August. The overall number of coins sent to a null address since the launch of the mechanism stands at over 410 trillion, meaning there are currently 583.4 trillion in circulation.
Incoming Surge in the Short-Term?
Another possible factor suggesting that SHIB’s uptrend could occur as early as this month is the upcoming FOMC meeting (scheduled for September 18) following which the US Federal Reserve is expected to cut interest rates for the first time in years. The movement makes money-borrowing cheaper and could increase the investor interest in risk-on assets such as cryptocurrencies.
Certain on-chain metrics also hint at good days ahead for SHIB bulls. The Shiba Inu exchange netflow, for example, has mostly been negative in the last week, signaling a shift from centralized platforms toward self-custody methods. This could be interpreted as a bullish sign since it reduces the immediate selling pressure.
Conclusion
While it’s difficult to predict the future with certainty, the factors outlined above suggest that SHIB’s price could potentially rally in the near future. The advancement of Shibarium, the burning program, and the upcoming FOMC meeting could all contribute to a positive uptrend. However, it’s essential to remember that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly.
FAQs
Q: What is Shibarium?
A: Shibarium is a layer-2 scaling solution designed to provide a scalable, low-cost, and efficient infrastructure for the Shiba Inu ecosystem.
Q: What is the purpose of Shiba Inu’s burning program?
A: The burning program aims to reduce the huge circulating supply of SHIB tokens, making it scarcer and potentially more valuable in time.
Q: What is the current price of SHIB?
A: As of [current date], the price of SHIB is around $0.00001364.
Q: What is the expected impact of the upcoming FOMC meeting on SHIB’s price?
A: The meeting could lead to a cut in interest rates, making money-borrowing cheaper and potentially increasing investor interest in risk-on assets such as cryptocurrencies.
Q: What are the on-chain metrics hinting at a potential uptrend for SHIB?
A: The Shiba Inu exchange netflow has mostly been negative in the last week, signaling a shift from centralized platforms toward self-custody methods, which could be interpreted as a bullish sign.
