Can $SHIB Reach $1?
Even if Shiba Inu can overcome its lack of fundamental upside catalysts, it still has to grapple with a serious mathematical problem. There are 589.29 trillion tokens in circulation, so based on the recent price of around $0.000025 per token, Shiba Inu has a market cap of around $15 billion.
Simple math dictates that at $1 per token, Shiba Inu would have a market cap of $589.29 trillion. In other words, it would be worth 196 times more than Microsoft, the most valuable company in the world. It would be 21 times more valuable than the entire U.S. economy, which generated $27.9 trillion in gross domestic product last year. Simply put, there is no way Shiba Inu can rise to $1 in its current state.
The community is trying to shrink supply by "burning" tokens, which removes them from circulation forever, but efforts have been futile so far. Assuming a constant market cap, around 589.25 trillion tokens would have to be burned to justify a price per token of $1, yet just 3.4 million tokens have been burned in the past 24 hours (as of this writing). At that pace, it would take 484,834 years to reach the target. Plus, it won't actually lead to gains for investors - they would simply own 99.9998% fewer tokens at a higher price of $1 each, leaving the value of their net position exactly the same.
Although Shiba Inu might continue to benefit from the renewed positive sentiment toward cryptocurrencies, investors should be aware that the magnitude of any further upside is completely unpredictable. Therefore, it might be best to stick with industry leaders like Bitcoin in the crypto universe, or, better yet, buy tried and tested assets like stocks.
