Shiba Inu Price Surges 4.663% Amid Token Burning Increase

Shiba Inu's latest price was $0.00001221, up 4.663% in the last 24 hours. Cryptocurrency analyst Davinci Jeremie, known for his 2011 advice to purchase Bitcoin, has shared his perspective on the feasibility of Shiba Inu (SHIB) reaching a $1 price target. In a recent video, Jeremie delved into the mathematical implications of such a price prediction for SHIB’s market capitalization. He explained that if Shiba Inu were to reach $1, its market cap would need to be $600 trillion, a figure that far exceeds the total value of all global financial assets combined. Jeremie emphasized that this scenario is mathematically impossible, making it clear that while Shiba Inu has potential, the $1 target is unrealistic. Despite this, Jeremie acknowledged that there is still some upside potential for SHIB, even if the $1 target is unattainable.

Shiba Inu’s token burning process has seen a significant increase. According to Shibburn, the rate of burning rose by 401.25% in the last 24 hours, with 12,237,063 SHIB tokens permanently removed from circulation. This surge, while notable, is modest compared to the 60,000% increase in the SHIB burn rate observed in late March. Token burning is a deflationary process used by various cryptocurrencies to reduce their total supply, which can create scarcity and potentially drive up the token’s value if demand remains stable or increases. The burn rate graph indicates a consistent upward trend, with over 12 million tokens burned in the reporting period, up from about 2.5 million.

Despite market fluctuations and skepticism about extreme price targets, Shiba Inu’s development team continues to focus on expanding and improving the ecosystem’s technical capabilities. SHIB developer Kaal Dhairya recently addressed the community, encouraging them to focus on building rather than market sentiment. Dhairya highlighted ongoing development work, including layer-2 scaling solutions like rollups, which aim to increase transaction throughput while lowering network fees. Additionally, the team is exploring advanced privacy capabilities through Fully Homomorphic Encryption (FHE), which allows operations on encrypted data without revealing the information. Dhairya’s message underscored the importance of building and innovation in the face of market volatility and skepticism.

In a recent discussion, popular Bitcoin advocate Jeremie provided a reality check on the idea of Shiba Inu reaching the $1 mark. As Shiba Inu celebrates its fifth anniversary, optimism remains, but so does skepticism. Jeremie pointed out the impracticality of SHIB reaching $1, highlighting that for this to happen, its market cap would need to balloon to an astronomical $600 trillion, far outstripping the combined value of gold, global stock markets, and the entire crypto market. Currently, SHIB’s market cap stands at a modest $6.44 billion. Jeremie’s analysis underscores the need for a rational approach to SHIB price forecasts, considering the asset’s real-world valuation and technical trends.

Shiba Inu has declined relative to its rivals, despite recent efforts to provide it with more utility and stronger fundamentals. The token has seen a drop to $0.00001199, coming as the crypto market as a whole falls by the same percentage. Despite the market’s recent lift in response to Trump’s 90-day pause on higher tariffs, SHIB remains down by 3.5% in a week, by 9% in a fortnight, and by 57% in a year. These percentages are disappointing for a token that was the thirteenth-biggest by market cap this time last year, with SHIB since falling down to 21st amid a relative loss of interest and growing competition. However, newer coins are appearing to fill the void it has left, with new ERC-20 token SUBBD raising over $100,000 in the first week of its presale.

SHIB’s chart is now in an interesting position, given that its indicators look like they’ve begun to show signs of a recovery. Having touched an oversold 30 a few days ago, its RSI (purple) is currently rising towards 50, a clear sign of growing buying pressure. Meanwhile, its 30-day average (orange) looks like it may flatten out, something which could mark the beginning of a rise towards the 200-day average (blue). Given that SHIB has been in an oversold position since the middle of December, it really is overdue a big rebound. However, there are two things worth bearing in mind, with the first being that SHIB is dependent, like the rest of the market, on the development of the ongoing tariff situation. If the US can negotiate trade-friendly deals with (or completely drop tariffs on) most countries, then the market will almost certainly continue the recovery it potentially began today. However, if the situation worsens again, we may see SHIB fall even further. On top of this, there’s an argument that SHIB has been suffering from a long-term decline for a couple of years now, with efforts to provide it with more utility falling short. We have seen the launch of its own layer-two Shibarium in August 2023, as well as the launch of several Shiba Inu-themed games. Yet such developments haven’t done enough to keep SHIB in the top 20, implying that the market is becoming less interested in the coin over time. As such, while an improvement in macroeconomic conditions may see it return to $0.0000150 in the next few weeks, it’s doubtful whether it’s going to experience a true market-beating rally this year. Investors are already piling into other ICOs, with SUBBD (SUBBD), an ERC-20 token that launched its own presale last week, raising just over $140,000 in this sale, providing an early sign of how popular it could become. One big advantage SUBBD has is that it comes with very strong utility, being the native token of an adult-oriented content creation platform.