As meme coins recovered from their 2023 lows, expectations for coins like Shiba Inu are rising, with price targets being set for $0.0001. Reaching this price level would be a new all-time high for SHIB, but there are a number of factors that will drive the growth needed to reach it.
Shiba Inu Needs Demand
The Shiba Inu price, as with other cryptocurrencies, is highly dependent on the demand to supply ratio. When there is more supply than demand, the price tends to suffer. However, when demand surpasses supply, it leads to a surge in price, which is why demand for the SHIB token is important.
Some indicators of rising demand include a rise in the trading volume and in the last 24 hours, the SHIB daily trading volume is up over 33% to reach $2.1 billion. There has also been an increase in the Shiba Inu open interest as well, suggesting that traders are taking more interest in the coin.
If the demand for SHIB continues to rise and sellers run out of coins to sell, this shrink in available supply will be one of the major drivers pushing the price above $0.0001.
SHIB Burns Ramp Up
Another factor that promises an increase in the Shiba Inu price is the fact that burning SHIB tokens have become widespread in the community. With the Shiba Inu team joining in and using fee revenue from the Ethereum Layer 2 network, Shibarium, the burn rates have ramped up over the last few months.
The latest of the team burns is a 40 ETH burn that will see over $100,000 worth of SHIB taken out of circulation. This qualifies as the largest SHIB burn carried out by the Shiba Inu team since it started burning tokens.
On the part of the community, they continue to join the effort, with daily burns. While these burns may not be as significant as the burns from the team, they still contribute to reducing the total supply. In the last day, over 15 million SHIB was sent to the burn wallet, leading to a 429.78% increase in the burn rate, according to data from Shibburn.
Crypto Bull Market
A general crypto bull market sees cryptocurrencies in the market go on a massive run. During this time of increased interest, coins like Shiba Inu which have already established a tight-knit community tend to perform quite well due to this support. If Bitcoin continues to rise and takes the entire crypto market with it, then SHIB seeing a 3.5x move from here to reach $0.0001 is not out of the question.
SHIB continues to show strength | Source: SHIBUSDT on Tradingview.com
Featured image from Binance Academy, chart from Tradingview.com
