- Shiba-Inu has woken up again – sparked by institutional interest, evidenced by several ETF applications, and thanks to its technical position, which currently make the SHIB token a classic DIP buy.
- Deeper reasons include increasing utility and the deflationary power of its L2 tool, Shibarium. In addition, there are token burns, which reduce supply and attract new investors.
The mood surrounding the Shiba Inu memecoin is taking a new turn after the token has so far mainly drawn on its 2021 fame. The 2021 bull market saw SHIB rise to an ATH of $0.00008616, but the price has since fallen by almost 90%. But despite this massive drop, the memecoin remains one of the best-performing cryptocurrencies.
Now, analysts and on-chain data suggest that SHIB could be preparing for a massive comeback.
First, there is a new phase of investor optimism for Shiba Inu. Influential figures in the crypto industry, including Binance founder Changpeng Zhao, Strategy’s Michael Saylor, ARK Invest’s Cathie Wood and Eric Trump – the president’s son by profession – have made bullish predictions for Bitcoin, suggesting that BTC could eventually reach $1 million.
According to historical patterns, explosive BTC rallies have triggered spillover demand for high-beta assets like SHIB.
The dynamics of SHIB are not only influenced by retail investors. Like CNF has reportedthere was a new wave of institutional investment in October. T. Rowe Price added SHIB to a multi-coin ETF along with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE), Chainlink (LINK), Bitcoin Cash (BCH), Hedera (HBAR), and Stellar (XLM).
Additionally, earlier this month, Grayscale added the popular memecoin SHIB to the “Consumer & Culture” category in its Market Byte publication, and let’s not forget the European issuers who have included SHIB in new regulated products.
According to reports, exchange supply has dropped by more than 60%, meaning long-term holders and institutions are accumulating the memecoin.
Second, one of Shiba Inu’s strongest long-term value propositions remains its aggressive burn strategy. Vitalik Buterin’s historic combustion in 2021 sparked SHIB’s largest rally, and the team is now developing a more robust combustion system that is increasingly powered by Shibarium activity.
According to Shibburn founder John Smith, the community’s consistent burning shows “an unwavering commitment to reducing supply” and signals a long-term strategy to increase scarcity.
Recent Shibarium activities support this development. In particular, transactions increased by 70%, the total value of completed transactions increased by 137%, and new utilities tied to Unity nodes are expected to accelerate burning throughput. As supply continues to tighten, upward pressure on prices becomes increasingly likely.
Third, Shibarium, the project’s Layer 2 blockchain, is emerging as SHIB’s key fundamental catalyst. A growing number of applications are built on top of the network, driving usage, fees and revenue. More development means more users joining the ecosystem, which historically increases demand for SHIB.
At the same time, technical indicators are consistent with bullish momentum. SHIB has formed a falling wedge pattern, holding support above the 200-day EMA and showing a bullish MACD crossover.
The whale accumulation patterns also suggest that key holders are buying dips, suggesting that any price decline could serve as an ideal buying opportunity.
Meanwhile, SHIB joins Editorial deadline for $0.000009044 the owner after falling almost 10% in the past week.
No Comments