3 Reasons Why the Shiba Inu (SHIB) Price Might Rally Soon

TL;DR

• SHIB’s price has recorded only a 1% daily increase, but some essential factors hint that the resurgence has yet to start.
• The burn rate has skyrocketed by over 8,000%, while the weekly exchange netflow signals a reduced immediate selling pressure.

New Bull Run Incoming?

The cryptocurrency market has witnessed a substantial revival in the past 24 hours, with Bitcoin (BTC) rising above $87,000 and Ethereum (ETH) challenging $2,100. However, some leading digital assets have not followed the overall green path.

The second-largest meme coin – Shiba Inu (SHIB) – is among the examples, with its price recording a mere 1% increase on a daily scale. In fact, it remains in red territory on a weekly basis, currently trading at roughly $0.00001312 (per CoinGecko’s data). 

SHIB Price, Source: CoinGecko

Several factors, though, suggest that SHIB might soon catch up with the top performers. The meme coin’s burn rate, for instance, has exploded by over 8,000% in the last 24 hours, resulting in more than one billion tokens being sent to a null address.

The mechanism’s ultimate goal is to reduce Shiba Inu’s tremendous circulating supply and potentially make the coin more valuable in time via scarcity. The program was introduced approximately three years ago, and since then, the team and community have burned over 410.7 trillion SHIB, leaving 584.3 trillion in circulation. 

The next bullish element on the list is Shiba Inu’s exchange netflow. CryptoQuant’s data shows that outflows have surpassed inflows in the last week, signaling a possible shift from centralized exchanges to self-custody methods. This, in turn, reduces the immediate selling pressure. 

SHIB’s potential rally could also be triggered by Shibarium’s further advancement. The layer-2 blockchain solution has recently noted a significant resurgence, processing multi-million daily transactions and blasting through yet another major milestone. 

The protocol aims to foster the development of the Shiba Inu ecosystem by lowering transaction costs, improving speed, and enhancing scalability. According to some industry participants, Shibarium’s progress could indeed fuel an impressive rally for the underlying token. The popular analyst Davinci Jeremie, who is known for his pro-BTC stance, recently said:

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.

However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”

Bonus: Potential Partnerships

Key collaborations between Shiba Inu and well-known entities can also trigger upward pressure on the meme coin’s price. The crypto community recently noted the disappearance of Shytoshi Kusama (SHIB’s former lead developer) from X, but LUCIE (Shibarium’s marketing strategist) explained the leader has become an ambassador of the project and is “doing exactly what he announced he would.”

Several X users appreciated the comment, expecting “groundbreaking partnerships” for the meme coin project once Kusama breaks their silence. 

It is important to mention that Shiba Inu has already inked an important deal in February of this year. Back then, the team behind the project shook hands with the Ministry of Energy and Infrastructure of the United Arab Emirates, while SHIB’s price charted substantial gains shortly after.

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