3 Reasons Why Shiba Inu (SHIB) Price May Rise in the Near Future

TL;DR

• The upcoming launch of TREAT and the reduction of Shiba Inu’s holdings on exchanges signal a growth in the ecosystem and a reduction in selling pressure, which could lead to higher prices.
• More than 44.6 billion SHIBs were burned in 2024, highlighting continued efforts to reduce supply and increase value.

A new Bull Run on the horizon?

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

Depending on some important factors, the price might just move higher in preparation for a much more substantial upward move. One of them is the upcoming launch of TREAT. The reward token, what will Enticing Users to Interact with Shiba Inu Protocols, Including Layer 2 Scaling Solution Shibarium, Will Officially Go Live January 14.

This development is another example of the growth of the SHIB ecosystem in recent years. This could boost investor confidence, leading more people to jump on the bandwagon and causing the prices of the second-largest coin to rise subsequently.

The next bullish element is the quantity of Shiba Inu stored on the exchanges. CryptoQuant data watch that this figure has recently fallen to levels last seen in spring 2021. This suggests a shift from centralized platforms to private wallets, meaning a reduction in immediate selling pressure.

Finally, we will focus on the “InTheMoney” indicator (which measures the evolution of the number of SHIB investors currently sitting on paper profits). According to IntoTheBlock, it increased by 1.10% on a 24-hour scale, entering bullish territory.

As of the moment As of this writing, approximately 57% of all Shiba Inu keepers are profitable, while 36% remain underwater. This is a serious improvement over the statistics witnessed in September 2023. At that time, almost 90% of those who had The funds distributed to the self-proclaimed Dogecoin killer were based on unrealized losses.

Bonus: the combustion mechanism

Another factor that could contribute to a potential SHIB rally is the meme coin’s burning program. For the uninitiated, the team behind the meme coin launched the mechanism in 2022, with the aim of reducing the huge supply of tokens and driving up the price due to scarcity.

The combustion rate has increase by almost 35% over the past week, resulting in 83.4 million SHIBs being sent to a zero address. The USD equivalent of the reserve remains insignificant, but continued efforts in this area could benefit the bulls.

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