Could Shiba Inu’s Burn Strategy Unlock a 570% Surge?

Shiba Inu (SHIB), the Ethereum-based memecoin, has recently shown signs of a potential bullish reversal, reigniting discussions about its price trajectory. Despite its origins as a meme-inspired project and lack of tangible utility, SHIB has carved out a niche in the crypto market, trading with a market capitalization of $7.25 billion as of late 2025. Analysts and traders are now speculating whether the token could surge by up to 570% to reach $0.000081, a level not seen since its 2021 high of $0.000090.

Recent price action has been mixed, with SHIB experiencing a 1% increase in the last 24 hours, despite a 6.08% decline over the past year. The token's 2% rally since Tuesday afternoon has positioned it as the fifth-highest-performing memecoin, outperforming the broader cryptocurrency market’s 1% gain. Traders have noted that SHIB has outperformed rivals like Trump Coin (TRUMP), which saw a 64% decline in weekly trading volume. The token's weekly performance also saw a 1% increase in buyer ratio, with 52% of traders taking long positions, suggesting a slight shift in sentiment.

Shiba Inu's ecosystem has continued to evolve, with the launch of Shibarium, a Layer-2 solution designed to enhance scalability and reduce transaction costs. While Shibarium has yet to deliver significant gains, it has drawn attention as a potential catalyst for long-term adoption. The ecosystem has also seen notable on-chain activity, including a 10.4 trillion SHIB token purchase by whales in June 2025 and a 1 billion token burn in March 2025. These developments have contributed to a reduction in circulating supply, now at 589 trillion SHIB, which may support future price appreciation.

Despite these developments, SHIB remains highly volatile and sentiment-driven. Analysts have pointed to conflicting signals in the market. On one hand, Chaikin Money Flow (CMF) and weighted sentiment metrics suggest growing optimism, with SHIB showing signs of accumulation among top wallets. On the other hand, technical indicators like the Relative Strength Index (RSI) and EMA crossovers have highlighted bearish tendencies. The token has also seen declining holding times, indicating that investors are less willing to hold onto SHIB for extended periods. Exchange reserves have also hit monthly lows, raising concerns about liquidity pressure.

A key consideration for potential buyers is whether SHIB can maintain positive momentum amid a broader market slump. Some analysts argue that SHIB's resilience, despite a 11% weekly loss, could signal a bullish breakout. The Chaikin Money Flow (CMF) has been trending upwards, suggesting increased inflows of capital into the token. If SHIB can break above the $0.00001295 resistance level, it may attract more institutional and retail buyers, potentially propelling the token toward the $0.000081 target.

However, reaching this price level would require substantial demand and a significant reduction in supply. SHIB's large circulating supply of 589 trillion tokens presents a major challenge for any meaningful price appreciation. Analysts have highlighted that a 570% move to $0.000081 would require a fully diluted valuation of over $47 billion, a scenario that remains speculative. While token burns and ecosystem development have been positive signs, macroeconomic conditions and broader crypto market dynamics will ultimately determine SHIB's long-term potential.

Source:

[1] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/price/shiba-inu)

[2] 1 Reason Every Investor Should Know About Shiba Inu (SHIB) (https://finance.yahoo.com/news/1-reason-every-investor-know-100500128.html)

[3] What is Shiba Inu (SHIB) Coin and is it a Good Investment? (https://www.tokenmetrics.com/blog/what-is-shiba-inu-coin?74e29fd5_page=3)