SHIB Price Outlook in 2025: Impact of Recent Burn Rate Developments on Market Sentiment

Shiba Inu Burn Rate Plummets 90% – How This Will Impact SHIB Prices in 2025

Shiba Inu’s recent downtick in burn rate has sparked speculation, as the price remains under pressure amid a crypto crash. The token’s fluctuating burn rate and elevated whale activity have led many to wonder how these dynamics will impact SHIB prices in the coming year.

A staggering 90.69% drop in burns over the last 24 hours has raised eyebrows within the cryptocurrency community. This dramatic decrease suggests a slowdown in burn activity, which could potentially impact token price movements.

In theory, burn rate is designed as a deflationary mechanism to reduce supply and increase scarcity, driving up demand for SHIB tokens. However, recent data reveals that this process may not be yielding the desired results.

Despite this, weekly burns have presented a different narrative, showcasing a modest 4.5% increase in token destruction over the past week. This signals that community efforts to reduce supply are still active, even if the short-term burn rate has decreased.

Price action remains subdued for SHIB, with the memecoin trading at $0.00002167 at press time. Recent price movements have been marked by a downward trend, with a minor 1.69% increase over the past day providing little respite from the broader market’s woes.

Furthermore, technical indicators are painting a bearish picture, as SHIB’s declining RSI and reduced trading volumes signal further decline in demand.

The impact of whale transactions on SHIB prices cannot be overstated. Our analysis of Santiment data revealed a correlation between large-scale trades and SHIB momentum in October and November 2024. This has led us to believe that these high-stakes investors will continue to play a crucial role in shaping the token’s trajectory moving forward.

As we look ahead to 2025, it is crucial for the Shiba Inu network to develop its underlying utility to counterbalance the unpredictability of whale-driven market movements. The token’s reliance on burns and speculative trading has limited its growth potential, making a broader adoption strategy essential for sustainable price appreciation.

In conclusion, while the current slowdown in burn rate may provide some respite from downward pressure, it is unlikely to fundamentally shift the narrative without concrete network advancements and increased use cases. A reevaluation of SHIB’s long-term prospects will be necessary as we navigate the complexities of 2025’s cryptocurrency landscape.

Source: ambcrypto.com