In 2013, Dogecoin introduced the cute Shiba Inu dog to the world of cryptocurrencies. Seven years later, in 2020, a new cryptocurrency called Shiba Inu Coin (SHIB) was created, using the same dog as its symbol. SHIB quickly became very popular and attracted investors worldwide. Now one question that arises in the minds of SHIB holders is âWill Shiba Inu Coin Reach $1?â The answer is âLikely Impossibleâ. Why? Go through this analytical article to find out.
Shiba Inu Coin is more than just a meme coin. Unlike many of its counterparts, SHIB has found use cases on the recently launched Shibarium blockchain. The Shiba Inu community is actively involved in âburningâ tokens, which means permanently removing them from circulation to reduce the overall supply.
One notable event in SHIBâs history was when Ethereum co-founder Vitalik Buterin burned 90% of his SHIB tokens and donated the remainder to COVID-19 relief efforts in India. This action significantly reduced the token supply and garnered positive attention for the project.
Is It Possible for Shiba Inu Coin to reach $1?
Many Shiba Inu (SHIB) holders dream of the coin reaching $1, but is this realistic? To understand this, we need to look at the numbers. SHIB coin was initially launched with one quadrillion tokens. Even after significant burns, including Buterinâs action, the current supply stands at about 589.27 trillion SHIB tokens.
The current market cap of Shiba Inu coin stands at $9.04 billion. For SHIB to reach $1, its market capitalization would need to increase to nearly $600 trillion. To put this in perspective, Bitcoin, the leading cryptocurrency, has a market cap of about $1.3 trillion. For SHIB to reach $1, its market cap would need to be 460 times higher than Bitcoinâs current value, or about 250 times the entire cryptocurrency marketâs value.
SHIB USD has outperformed Bitcoin. Source: TradingView
Even in 2030 or 2050, reach $1 for Shiba Inu coin seems impossible. The core issue lies in the massive number of SHIB tokens in circulation. Even with active token burning efforts by the community, reaching the level of burn required for a $1 valuation is extremely unlikely. To put this into perspective, the supply would need to be reduced by 99% to bring the market cap below $6 trillion at a $1 price point. This level of reduction is highly improbable at the current burn rates.
While 2050 may seem far off, and inflation might reduce the relative value of a dollar, the current SHIB burn rate is nowhere near sufficient to make a $1 valuation realistic. The burn rate would need to increase dramatically and consistently over decades to make a significant dent in the supply.
Given these figures, itâs highly improbable for Shiba Inu coin to reach $1 in the foreseeable future. A more realistic question might be whether Shiba coin can reach 1 cent?
Shiba Inu Coin Reaching $0.01 Seems More Realistic
While $1 seems out of reach, the possibility of Shiba Inu coin reaching $0.01 is more plausible, though still challenging. As of this writing, Shiba Inu price trades at $0.00001532. To reach $0.01, SHIB would need to increase its current value by 615 times.
Shiba Inu has performed well, increasing by 72.0% in the past year. However, reaching $0.01 would require sustained growth and significant reduction in token supply through burns.
How Could Shiba Inu Coin Reach $0.01?
The Shiba Inu ecosystem has been expanding rapidly, with several key developments that could potentially drive the projectâs growth and value.
Successful Launch Shiba Eternity Game
One of the most notable additions is the Shiba Eternity game, the first mobile game from the Shiba Inu project. This game boasts top ratings on both Google Play and Appleâs App Store. The Game burns 5% of its profits in SHIB tokens, reducing supply over time. Shiba Eternity is still under active development, with new features planned to enhance gameplay.
Source: X ShibaSwap Development
Another crucial development in the Shiba Inu ecosystem is ShibaSwap, a decentralized exchange (DEX) built on the Shibarium blockchain. ShibaSwap offers a range of functionalities including token bridging between Shibarium and other blockchains, as well as staking opportunities within the Shiba Inu ecosystem.
Bury, a staking mechanism, allows SHIB holders to earn yields in ETH, SHIB, and BONE â a governance token for the Shiba Inu ecosystem. BONE holders can participate in ecosystem governance by voting on proposals. Additionally, another token called LEASH grants access to exclusive perks, including early access to NFT mining, land sales in the upcoming metaverse project, and enhanced rewards for liquidity providers on ShibaSwap.
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Great Emphasis on SHIB Burning Tokens
Token burning is another significant aspect of the Shiba Inu projectâs strategy. This process involves sending tokens to an unrecoverable wallet address, effectively removing them from circulation forever. Both the project team and the community actively participate in burning SHIBA coins to reduce the overall supply. On peak days, up to 28 million tokens have been burned, although the burn rate tends to be inconsistent.
Source: Shiba Burn Tracker
The Shiba Inu community has even initiated a petition on Change.org, requesting Binance to burn 1% of SHIB trading fees daily. While token burning is unlikely to push Shiba Inu coin to reach $1 in the near future, it could potentially help in reaching the more modest goal of $0.01.
Upcoming Layer-3 Solution
Furthermore, the Shibarium Layer-2 solution aims to improve transaction speed and reduce costs. Additionally, an upcoming Layer-3 network promises even greater efficiency and privacy features. This new network will use a token called TREAT for governance and incorporate privacy enhancements through Fully Homomorphic Encryption (FHE). The team has already raised $12 million to develop this new blockchain.
Whatâs Stopping Shiba Inu Coin Price to Reach $1?
While Shiba inc coin has growth potential, several obstacles stand in the way of reaching $1.
Massive Token Supply
SHIBâs circulating supply of 589 trillion tokens is its biggest obstacle. This huge number makes it difficult for Shiba Inu coin to increase its price significantly. Even removing one zero from its current price would require a tenfold increase in value. While token burning is ongoing, the current rate is too slow to make a substantial impact anytime soon.
Limited Real-World Use
Unlike Bitcoin or Ethereum, SHIB isnât widely accepted for payments. Only about 938 businesses worldwide accept SHIB, compared to around 15,000 for Bitcoin. This limited use in the real world makes it harder for Shiba Inu token to gain widespread adoption and value.
Market Cap Limits
SHIBâs enormous supply creates unrealistic market cap scenarios at higher prices. For Shiba Inu coin to reach $1, SHIBâs market cap should be $589 trillion â far exceeding the entire crypto market and even the US GDP. This makes reaching such high prices nearly impossible without massive supply reduction.
Frequently Asked Questions (FAQs)
Is it possible for Shiba Inu (SHIB) coin price to reach $1?
Itâs extremely unlikely. For Shiba Inu (SHIB) coin price to reach $1, its market cap would need to be $589 trillion, which is about 450 times larger than Bitcoinâs current market cap of $1.3 trillion. This level of growth is not realistically achievable given current economic conditions.
How long will it take for Shiba Inu (SHIB) coin price to hit 1 cent?
While more achievable than $1, reaching 1 cent is still highly improbable in the foreseeable future. Current projections donât see the price of Shiba Inu (SHIB) coin reaching this level. The most optimistic forecasts suggest a potential high of $0.000036 by 2034, which is still far from 1 cent.
Shiba Inu (SHIB) Coin Price Prediction?
Based on current analysis and market conditions, the most optimistic price prediction for Shiba Inu (SHIB) coin is around $0.000036 by 2034. However, cryptocurrency markets are highly volatile, and these projections can change based on various factors.
Will Shiba Inu outperform other meme coins?
Shiba Inu has potential advantages over some other meme coins due to its growing ecosystem. With developments like the Shibarium Layer-2 blockchain, yield staking, an upcoming Layer-3 blockchain, games, and a planned metaverse, SHIB offers more utility than many of its meme coin counterparts. However, performance in the crypto market is never guaranteed, and all investments carry risk.
How does token burning affect Shiba Inu coinâs price?
Token burning reduces the overall supply of Shiba Inu coin, which could potentially increase its value if demand remains constant or grows. However, the current burn rate is relatively low compared to the total supply, so its impact on price has been limited so far.
What real-world use cases does Shiba Inu have?
While originally created as a meme coin, Shiba Inu is developing more use cases. These include decentralized finance (DeFi) applications on ShibaSwap, potential use in gaming and metaverse projects, and as a speculative investment. However, its acceptance for real-world transactions remains limited compared to major cryptocurrencies.
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