TL;DR
Shiba Inu (SHIB) has experienced a notable price increase recently, but stagnation in Shibarium’s advancement and other factors indicate a potential downward pressure.
Despite these warning signals, some analysts remain highly optimistic, outlining bold predictions that SHIB’s market cap could reach extreme levels.
SHIB’s Rally About to End?
Shiba Inu (SHIB) has enjoyed a solid resurgence in the past month, with its price pumping by over 40%. Currently, it trades at around $0.00001865 (per CoinGecko’s data), which represents a 5% daily increase.
SHIB Price, Source: CoinGecko
Some factors that may have contributed to SHIB’s rally include the overall revival of the cryptocurrency market (where Bitcoin (BTC) briefly soared above $68K) and the upswing of the entire meme coin niche.
However, some elements suggest that the near future may offer some pain for the Shiba Inu bulls. The first component is the SHIB exchange netflow which has been on the rise in the last few days. This suggests a shift from self-custody methods toward centralized platforms, which in turn, increases the immediate selling pressure.
Next on the list is Shibarium’s stalled progress. Daily transactions on the layer-2 blockchain solution have been hovering below 10,000 since the beginning of the month, representing just a fraction of the figure recorded at the start of the year, when new transactions were in the millions.
Shibarium is designed to foster the development of the Shiba Inu ecosystem by improving speed and enhancing scalability. As such, its underperformance may lead to waning investor interest and a consecutive price pullback. For more updates on the ecosystem, check out our Shibarium news.
Last but not least, we will focus on SHIB’s burning mechanism. The burn rate is down approximately 36% today (October 18), with only 5.7 million tokens sent to a null address.
The program’s ultimate goal is to reduce the circulating supply of the meme coin, making it scarcer and potentially more valuable in time (should demand remains constant or goes up). Conversely, when fewer tokens get burned the supply remains high which could hinder SHIB’s price growth.
Wild SHIB Price Predictions
Contrary to the aforementioned factors hinting at a potential pullback, some market observers expect SHIB to chart further gains in the future.
Earlier this week, content creator Jake Gagain promised to delete his X account if the meme coin’s market capitalization does not reach $100 billion. As of now, the forecast seems quite unlikely, considering that the figure needs to pump almost ten-fold to tap such a level.
Davinci Jeremie was even more bullish. He envisioned an overall explosion of the meme coin niche, predicting its market cap could hit the ridiculous $1 trillion mark this cycle. Currently, the sector’s capitalization is standing at around $60 billion, or 6% of the depicted target.
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