Shiba Inu (SHIB) Positions Itself for a Chance to Become a Top-Tier Cryptocurrency

SHIB ranks 13th on CoinMarketCap, boasting a market capitalization of over $16.8 billion. In the past three months, SHIB has more than doubled in value

Shiba Inu (SHIB), the self-proclaimed “Dogecoin killer,” has experienced a rollercoaster ride in the past three months. After hitting a local high on Dec. 7, the meme coin faced selling pressure amid a broader market correction.

However, SHIB price movements remain highly unpredictable due to the inherent volatility of meme coins. Despite struggling to maintain its value in 2023, SHIB has shown signs of revival, climbing over 220% in recent months.

After launching in August 2020, Shiba Inu (SHIB) quickly gained attention for its unique strategy of donating 50% of its supply to Ethereum creator Vitalik Buterin, who later burned 90% of the tokens.

The token surged in popularity during 2021, rivaling Dogecoin (DOGE) and even besting Ethereum (ETH) in trading volumes at its peak. However, the price subsequently fell over 90%, dropping below 8 millionths of a dollar in 2023.

Shiba Inu price today: Live SHIB price updates

After reaching a low of $0.00002044 on Dec. 29, SHIB began to show signs of recovery. At the time of writing, the meme coin is trading at $0.00002833, up 220% from its 2023 low and slowly approaching 30 millionths of a dollar.

While still far below its all-time high in November 2021, the current price aligns with its highs from May of the same year. A sustained rally above these levels could pave the way for further gains in the coming months.

Shiba Inu burn rate: How does SHIB burning work?

The Shiba Inu burn rate serves as a key ecosystem metric, reflecting the community's optimism about the SHIB project.

By reducing the overall token supply, it aims to boost scarcity and maintain positive sentiment, potentially influencing SHIB's price.

With transactions on Shibarium, SHIB is used to pay gas fees, and a portion is burned, contributing to this deflationary mechanism. While the strategy aligns with long-term value growth, significant price impacts would require larger-scale burns to create more dramatic effects.

Shiba Inu and Bitcoin correlation: SHIB price vs. BTC price movements

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

Historically, the correlation has been weak since the last bullish cycle. According to data from Ark Invest, since the last cycle low, Bitcoin's price has increased 5.72 times, 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 trajectory of these two cycles, its price could potentially increase 15.4 times to around $243,000 during the next year, approximately 880 days after the November 2021 cycle low.

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

Will altcoin season reemerge?

Since the start of the year, 20 of the top 50 crypto assets by market cap have outpaced Bitcoin’s gain.

November’s trading volume reaching a yearly high and open interest hitting historic levels. Recent data from CryptoQuant indicates that altcoin trading volume is not driven by BTC pairs.

Alt season is no longer defined by asset rotation from #Bitcoin.The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.Stablecoin liquidity better explains the altcoin markets.https://t.co/riejM7oXyk pic.twitter.com/6DDSmMfaGD

This suggests genuine market growth rather than a shift of capital from Bitcoin to altcoins, potentially signaling that this altcoin season may not wait for Bitcoin's price to stabilize.

Recent heightened volatility has led to significant liquidations, particularly in leveraged positions involving SHIB. A liquidation wave, causing $880 million in losses, highlights ongoing market deleveraging, further pressuring assets like SHIB downward.

Layer 2 and Chainlink partnership: Latest SHIB updates

The Shiba Inu ecosystem takes a major step forward with the integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) into its Shibarium network. This partnership designates CCIP as the primary cross-chain infrastructure for the ecosystem,

The collaboration paves the way for expanded DeFi applications and strengthens Shiba