Can Shiba Inu (SHIB) erase a 0 from its price before the end of 2024? (ChatGPT Analytics)

TL;DR

The Shiba Inu price increased substantially recently, but a significant rebound will depend on favorable market conditions and an increase in SHIB creaming. 55% of SHIB holders are now profitable, showing a positive change. How realistic is this scenario?

Shiba Inu has been in the headlines lately, with its price increasing by 35% in the past week. Its market capitalization rose above $11.5 billion, making it the fourteenth largest cryptocurrency, but still the second largest meme coin (behind Dogecoin).

SHIB Price, Source: CoinGecko

We decided to ask ChatGPT if this rally is sustainable and if the meme coin could erase a zero from its valuation before the New Year.

The popular AI-powered chatbot did not rule out this possibility. However, he stated that a major bull run would depend on numerous factors, including favorable market sentiment, Shibarium adoption and utility, and an increase in SHIB consumption rate.

Layer 2 scaling solution Shibarium recently took center stage when the total number of blocks processed on the network surpassed 7 million. In addition, the number of total transactions is south of 420 million, while wallet addresses are close to 2 million.

The protocol was officially launched last August. It is primarily designed to foster the development of the Shiba Inu ecosystem by improving scalability, improving speed and reducing transaction costs. For more updates on the ecosystem, be sure to check out our Shibarium News.

SHIB’s combustion mechanism has also been increased. As CryptoPotato reported on September 27, the burn rate skyrocketed by nearly 34,000%, resulting in more than 1.8 billion tokens being sent to a null address.

Continued efforts in this field will reduce the huge circulating supply of the meme currency, potentially causing the price to rise (if combined with undiminished demand).

It’s worth mentioning that erasing a zero from SHIB’s value would require its market cap to reach a whopping $115 billion. At the moment, Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) are the only three cryptocurrencies with higher capitalization.

SHIB holders are slowly escaping the red zone

Unsurprisingly, the latest rise in the price of the meme coin has benefited its investors. Data from IntoTheBlock shows that 55% of those exposed to the asset are currently sitting on some paper profit, while 43% remain underwater.

The situation looked much worse in September 2023, when the price of SHIB experienced a severe correction. At the time, nearly 90% of the asset’s holders were in the red.

The popular meme coin has a strong community base of long-term investors and supporters. According to the platform, almost 80% of SHIB holders jumped on the bandwagon more than a year ago. 19% did so in the last 12 months and only 2% joined the ecosystem in the last 30 days.

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