Can SHIB Remove a Zero From Its Price by Year-End 2024?

Summary

• The price of Shiba Inu has seen significant growth recently, but for a substantial rally, it will rely on favorable market dynamics and an increase in SHIB burn rates.
• Currently, 55% of SHIB holders are in profit, indicating a positive trend.

How Likely Is This Outcome?

Shiba Inu has been in the news recently, experiencing a price increase of 35% over the past week. Its market cap has risen above $11.5 billion, making it the 14th largest cryptocurrency, while remaining the second-largest meme coin after Dogecoin.

We reached out to ChatGPT to inquire whether this rally is sustainable and if the meme coin might eliminate a zero from its price before the end of the year.

The widely used AI chatbot didn’t dismiss the idea. However, it stated that a significant bull run would depend on various factors, including positive market sentiment, Shibarium adoption and usage, as well as an uptick in the SHIB burn rate.

Recently, the layer-2 scaling solution, Shibarium, has gained attention, having processed over 7 million total blocks on the network. Additionally, total transactions are nearing 420 million, while wallet addresses approach 2 million.

This protocol officially launched last August and aims to support the growth of the Shiba Inu ecosystem by improving scalability, speed, and reducing transaction fees. For more updates on the ecosystem, follow our Shibarium news.

The SHIB burning mechanism has also gained momentum. As CryptoPotato reported on September 27, the burn rate surged by nearly 34,000%, resulting in over 1.8 billion tokens being sent to an inactive address.

Ongoing efforts in this area are expected to decrease the substantial circulating supply of the meme coin, potentially triggering a price rise (if coupled with steady demand).

It’s important to note that eliminating a zero from SHIB’s value would require its market capitalization to soar to an impressive $115 billion. Currently, Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are the only cryptocurrencies with higher market caps.

SHIB Holders Start to Recover from Losses

Notably, the recent price surge of the meme coin has benefited its investors. Data from IntoTheBlockindicates that 55% of those holding the asset are currently profitable, whereas 43% remain at a loss.

The scenario was considerably worse in September 2023 when SHIB’s price faced a substantial correction. At that time, nearly 90% of the asset’s holders were in the red.

The popular meme coin boasts a strong community base of long-term investors and supporters. According to the platform, about 80% of SHIB holders purchased their assets more than a year ago, 19% within the past year, and only 2% joined the ecosystem in the last 30 days.