Shiba Inu (SHIB), indicated an 11% drop in its price over the past week, starting the year with a downward trend. Still, market speculations suggest that a significant burning event could trigger an important turnaround for the company.
SHIB’s Burning Activity
The popular meme token Shiba Inu’s more horizontal price movement continues despite notable progress such as the introduction of the Layer-2 project Shibarium. However, optimism is building this month for a potential price increase. Rumors of a significant amount of token burning have encouraged this. Speculation emerged following a post by Ragnar Shib claiming that “9.25 trillion SHIB could be burned this month.”
The crypto community believes such a significant token burn could substantially reduce SHIB’s supply and potentially increase its value. However, the actual burn rate depends on the ecosystem activity of Shiba Inu. Daily transactions on the network decreased, dropping from the peak average of about 8 million recorded in December to 5.69 million. And in the last seven days, only 206.6 million SHIB tokens were burned, which is far from the monthly target of 9.25 trillion.
Shiba Inu’s Price Prediction
The latest data shows that SHIB has witnessed an 11% price drop since the beginning of the year and nearly a 5% decline over the last 30 days. The recent price performance has caused Shiba Inu to rank among the top 15 cryptocurrencies by market value and trade 89% below its all-time high.
As a result, Shiba Inu experienced an 11% decline over the past week, falling back to the $4 support level. Despite the Shibarium launch, its price movement continues to be horizontal, while expectations of token burning and Ragnar Shib’s claim of 9.25 trillion SHIB being burnable carry the hope of a potential price increase. However, the decrease in daily transactions and the actual token burn being below the targeted amount challenge the optimism. SHIB has shown low performance among the top 15 cryptocurrencies by market value with an 11% price drop since the beginning of the year.
