3 reasons why the price of Shiba Inu (SHIB) may increase in the near future

TL;DR

The upcoming launch of TREAT and the reduction of Shiba Inu holdings on the exchanges indicate the growth of the ecosystem and reduced selling pressure, which could lead to a price rally. Over 44.6 billion SHIB were burned in 2024, highlighting ongoing efforts to reduce supply and increase value. New bullfight on the horizon?

Despite strong fluctuations, Shiba Inu (SHIB) performed well last year, experiencing a price increase of more than 100%. The popular meme coin started 2025 off on the right foot, jumping 12% last week.

SHIB Price, Source: CoinGecko

Depending on some important factors, the price may be on the rise for a much more substantial upward move. One of them is the upcoming release of TREAT. The reward token, which will incentivize users to participate with Shiba Inu protocols, including the layer 2 scaling solution Shibarium, will officially go live on January 14.

This development is another example of the growth of the SHIB ecosystem in recent years. It could boost investor confidence, leading to more people jumping on the bandwagon and a subsequent price increase for the second largest meme coin.

The next bullish element is the amount of Shiba Inu stocked in stock exchanges. CryptoQuant data shows that the number has recently dropped to levels last seen in spring 2021. This suggests a shift from centralized platforms to private wallets, which means less immediate selling pressure.

Finally, we’ll focus on the “InTheMoney” indicator (which measures the change in the number of SHIB investors currently sitting on paper profits). According to IntoTheBlock, it is up 1.10% on a 24-hour scale, entering bullish territory.

At the time of writing, approximately 57% of all Shiba Inu owners are profitable, while 36% remain underwater. This is a huge improvement compared to the statistics witnessed in September 2023. At that time, almost 90% of those who had distributed funds to the self-proclaimed Dogecoin killer were sitting on unrealized losses.

Bonus: the combustion mechanism

Another factor that could contribute to a possible concentration of SHIB is the meme coin recording program. For the uninitiated, the team behind the meme coin launched the mechanism in 2022, aiming to reduce the huge supply of tokens and increase the price due to scarcity.

The burn rate has increased by almost 35% in the past week, resulting in 83.4 million SHIB sent to a null address. The USD equivalent of storage remains negligible, but continued efforts in the field could benefit bulls.

As reported by CryptoPotato, in 2024, over 44.6 billion SHIB (worth $1 million) were sent to a null address.

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