Shiba Inu Price Prediction: New Rewards & Token Burns vs Market Crash

Shiba Inu (SHIB) and most of the major cryptocurrencies are crashing today. But with some positive news, from opportunities for users to earn rewards to predictions of a potential 200% price surge and even discussions on the effects of token burns, can it be enough for SHIB to remain a dominant force in the crypto space and make up for its latest crash this week? 

Shiba Inu Rewards Users with Liquid Staking Feature

The Shiba Inu team, in collaboration with K9 Finance, has announced plans to reward new users of its liquid staking feature built on the Shibarium network. The initiative, revealed by marketing lead Lucie, aims to incentivize new participants during the festive season, offering rewards of up to $500.

Liquid staking allows users to lock up Bone ShibaSwap (BONE) and simultaneously use liquid tokens (kBONE) for ecosystem activities. This feature has significantly boosted Shibarium’s total value locked (TVL), which surged to $7 million earlier this year. Currently, Shibarium’s TVL stands at $4.63 million, highlighting its growing utility.

The partnership with K9 Finance and the promise of substantial rewards demonstrate the ecosystem’s commitment to enhancing user engagement and liquidity during this festive period.

Token Burns Impact on Shiba Inu’s Price

One of Shiba Inu’s major challenges is its vast supply of approximately 589 trillion tokens. However, burning tokens has been identified as a solution to increase SHIB’s price. Token burns reduce supply, thereby potentially boosting value.

In 2021, Ethereum co-founder Vitalik Buterin’s burning of 90% of his SHIB holdings led to a dramatic price spike. If 99% of SHIB tokens were burnt, the supply would reduce to 5.89 trillion tokens, and with a market cap of $14.68 billion, SHIB’s price could theoretically reach $0.00249—an astounding 9883.9% increase from current levels.

While such large-scale burns are possible, lead developer Shytoshi Kusama emphasizes the challenges, including increasing costs as demand rises. Kusama also highlights the importance of introducing new use cases for Shiba Inu’s tokens, such as Bone, Leash, and Treat, alongside burns.

Shiba Inu Price Prediction by 200%: Fact or Fiction?

Shiba Inu’s price action has historically been marked by impressive surges, and analysts now predict another potential 200% rise in November 2024. With the SHIB trading volume reaching $1.46 billion following a 28% spike, the sentiment within the community remains overwhelmingly bullish.

This anticipated growth underscores SHIB’s sustained popularity and its ability to deliver significant returns to investors despite its meme coin origins.