TLDR
- SHIB executive Lucie suggested a Shiba Inu ETF filing is possible due to the coin’s strong market presence
- The meme coin is available on over 110 exchanges with 212 trading pairs
- A 8454% surge in SHIB burn rate occurred as over 1 billion tokens were burned in 24 hours
- Some analysts predict dramatic price increases based on deflationary tokenomics
- SHIB price showed modest gains amidst these developments, trading around $0.00001303
Shiba Inu’s price has seen modest movement this week following comments from a community executive about the possibility of a SHIB ETF. Marketing lead Lucie posted on X that the dog-themed cryptocurrency shows strong characteristics that make it suitable for an ETF product.
Lucie pointed out that SHIB is available on more than 110 exchanges with 212 trading pairs. This wide availability includes all major crypto trading platforms, which she believes makes it an “absolute pick” for an ETF.
The comments come during a period of increased activity in crypto-backed ETF filings. Canary Capital recently filed an S-1 for a SUI ETF with the U.S. SEC, while Grayscale’s Dogecoin ETF filing has been acknowledged by regulators.
Market speculation about a potential BlackRock Dogecoin ETF has also been growing. These developments have created an environment where a Shiba Inu ETF seems increasingly plausible to many investors.
Token Burns Drive Deflationary Pressure
In parallel with ETF discussions, SHIB experienced a dramatic 8454% increase in its burn rate. Approximately 1 billion coins were permanently removed from circulation in a 24-hour period.
A single wallet address (0x55b8979a8d79f2802c79ff5a5083a0d7fdc182e3) was responsible for burning 1 billion tokens. This action helped trigger the massive spike in burn rate.
The total circulating supply after these burns stands at 584.35 trillion coins. Token burns are designed to reduce overall supply and potentially support price through increased scarcity.
When coins are burned, they are sent to a null address and permanently removed from circulation. This mechanism follows basic economic principles of supply and demand, with reduced supply potentially supporting prices if demand remains constant.
The combination of burn activity and ETF speculation has created a more positive sentiment among SHIB investors. Market indicators show growing interest in the asset.
Technical Analysis and Price Movement
As of the most recent data, SHIB was trading at approximately $0.00001303, representing a modest 1% increase. The coin has fluctuated between $0.0000128 and $0.00001309 in recent trading.
This price action comes after SHIB fell to a year-to-date low of $0.00001085 earlier in the month. The token remains about 62% below its highest price from November last year.
Technical indicators suggest some positive momentum may be building. SHIB has formed a bullish divergence pattern as key indicators have tilted upward.
Chart analysis shows the formation of a falling wedge pattern, which many traders consider a bullish sign. The coin has also moved slightly above the upper boundary of this wedge.
Futures market data from Coinglass indicates rising market interest. Shiba Inu futures open interest increased by 3.5% to $121.69 million.
Derivatives trading volume also jumped by 24% to $71.18 million. These metrics point to growing trading activity around the token.
Long-Term Outlook
Some analysts have made extremely optimistic predictions about SHIB’s future price potential. One pundit suggested the token could eventually reach $0.01, which would represent an 83,000% increase from current levels.
This analyst cited several factors supporting such growth, including SHIB’s deflationary nature, its utility development, and its global partnerships. The comparison with Bitcoin was notable, as the analyst highlighted Bitcoin’s inflation versus SHIB’s deflation.
While Bitcoin continues to experience annual inflation through mining, SHIB’s supply decreases through burns. The analyst believes this fundamental difference could lead to stronger performance for SHIB over time.
The development of Shibarium, a layer-2 network for SHIB, was also mentioned as a positive factor. This infrastructure aims to transform Shiba Inu from a meme coin to a utility token.
Despite the optimism, challenges remain. The Shibarium ecosystem is still developing and lacks the robust activity of more established networks.
SHIB’s Mean Dollar Invested Age has increased to 82, up from a year-to-date low of 39. This metric suggests longer holding periods among current investors.
Short-term price targets from technical analysts include a possible retest of $0.00001855, which would represent a 45% increase from current levels. However, a drop below $0.00001085 would negate this bullish outlook.
The current market sentiment appears cautiously optimistic as investors weigh the impact of recent developments.
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