The Recovery Outlook for Shiba Inu Coin (SHIB): Market Trends and Future Price Predictions
Looking back at the price history of SHIB, this cryptocurrency emerged in August 2020 as the 'Dogecoin Challenger' and quickly gained prominence in the market through strategies such as locking away half of its total supply.
The burn rate of SHIB is a dynamic metric that fluctuates over time and with community activities. It serves as a key gauge of the community's enthusiasm and commitment to the ecosystem, reflecting the community's actions to enhance SHIB's scarcity and increase its potential value by reducing the token supply.
On the Shibarium network, a portion of transaction fees is paid in SHIB and subsequently burned, implementing a deflationary strategy. However, to assess the substantive impact of the burn rate on SHIB's price, it is necessary to consider both the scale of the burns and the level of community engagement.
Regarding the correlation between SHIB and BTC, while there is some connection, the correlation is weak. SHIB tends to follow BTC's price movements during optimistic market sentiments, especially when institutional investment activities lead the market.
However, the relationship between the two is influenced by multiple market factors, and one cannot simply equate BTC's price trends with SHIB's future performance.
According to data provided by Ark Invest, this weak correlation between Bitcoin and altcoins has persisted since the last bull market cycle.
From the recent cycle low to now, Bitcoin's price has surged approximately 5.72 times, a trend that aligns with the patterns observed in earlier cycles.
If Bitcoin continues to follow its historical trajectory, it is expected to experience significant price growth, which may subsequently influence the altcoin market trend in 2025.
