Shiba Inu Price Prediction

The price of SHIB today is $0, changing within the past 24 hours for -4.75% and -10.54% over the week. SHIB’s price action is characterized by the Bearish sentiment.

The current volatility index for SHIB is measured at 3.65%. SHIB’s circulating supply is 589.24T. In the big picture, the highest price SHIB has reached is $0.0001 and its lowest observed price was $0.

SHIB Sentiment

Which way the market swings today? Overall, technical indicators show that currently, the sentiment in the SHIB markets is Bearish. The Fear and Greed Index for SHIB today is in the 16 (Extreme Fear) zone.

What is Shiba Inu (SHIB)?

Shiba Inu was largely inspired by another dog meme coin, Dogecoin. The centralization of DOGE and its stagnation caused some blockchain developers, one of whom is known as Ryoshi, to come up with an alternative.

Shiba Inu positions itself as a community-run fully decentralized cryptocurrency. Unlike the Dogecoin community, SHIBArmy is not too shy to take part in any crypto trend, keeping its relevance high.

It was launched in 2020 when DeFi was all the rage, and since then has built a whole ecosystem of digital assets. In 2021, it launched an NFT platform, and now the community has set its sights on the metaverse.

You’ll be able to find out more about Shiba Inu and the SHIB token in our Beginner’s Guide to SHIB.

What Influences Shiba Inu’s Price?

Supply Dynamics

Despite the team stressing the role of decentralization for the Shiba Inu Foundation, they could not stop the accumulation of SHIB by large holders. More than 61% of the liquid supply is stored at addresses with more than 0.1% of the circulating supply each. Although a lot of these addresses belong to exchange wallets or contracts, there are examples like one address that holds 3.8% of the total supply of SHIB. Large players can easily move the market with orders large enough, intentionally or not.

The demand for SHIB can be influenced by external factors, too. A recent example is Shiba Inu’s positive performance against the backdrop of Federal rate cuts. A 60% trading volume boost caused a Shiba Inu coin price rise in value by 6%, although the price surge has mostly ended by now.

The community holds burn events to reduce the supply of SHIB and increase its scarcity. With all their combined efforts, they have already removed 238 billion SHIB tokens from circulation in addition to 41% sent to a dead address at the very start. However, with the total SHIB token supply of nearly 1 quadrillion, this amounts to 0.02%. The enormous initial supply is a factor holding Shiba Inu back from reaching even a fraction of a cent due to supply dilution.

Ecosystem News

Shiba Inu often jumps when the team announces a new foray or upgrade, as often is the case with other assets. This is especially true for them since they try to keep the community’s interest in Shiba Inu’s future so high consistently.

Most recently, SHIB.io’s marketing lead has teased an update to the Shiba Inu ecosystem that has to do with the TREAT token. Not much is known about the ‘mysterious evolution’, although a few hints in their post suggest TREAT will find use in the metaverse and will see Shiba Inu further depart from the meme status.

Meme Coin Market Sentiment

Shiba Inu coin has rallied on the news of the Fed rates cut because it is an asset as high-risk as it gets: a meme coin. Normally, lower rates make investors more cautious with their choices but contrarian strategies are also valid to an extent. Due to being a meme coin, Shiba Inu should not be expected to trade like regular stocks.

However, Shiba Inu is a product of its time: 2021 was a time of a bull market in crypto markets, and by now, the meme coin game has completely changed. SHIB is facing competition from newer tokens, such as PEPE and WIF. Imbuing meme coins with a value proposition no longer seems to be a requirement, with tools like Solana-based Pump.fun that let anyone make a meme token of their own.

The SHIB team seems aware of this and continues trying to distance itself from the status and build something of value. And yet, from the trader’s perspective, there is not much difference due to the inherent features of Shiba Inu such as a large supply.