The possibility of Shiba Inu (SHIB) reaching $1 is an exciting dream for holders, but it comes with enormous economic challenges. One popular idea to support this goal is increasing liquidity through stablecoins like Tether (USDT). Another approach often discussed is shrinking SHIBโs circulating supply, but neither path is simple.
Why $10 Trillion USDT Would Be Necessary
For SHIB to hit the $1 mark, its market capitalization must match or exceed its circulating supply. With over 589 trillion SHIB tokens currently in circulation, reaching a price of $1 per token would require a staggering $589 trillion in market value.
USDT, one of the most widely used stable coins, is often seen as a way to inject liquidity into the market. However, the circulating supply of USDT is only about 118 billion at present. To drive SHIB to $1, an astronomical $10 trillion USDT would be requiredโmore than 84 times its current supply.
The problem? Printing $10 trillion USDT is an impossible task. Not only would it lead to severe inflation and destabilize the entire USDT ecosystem, but it could also wreak havoc on the broader cryptocurrency market. The effects would ripple through global financial systems, making this solution both impractical and dangerous.
Why Burning Tokens Wonโt Work
Another frequently suggested solution is token burning, which involves permanently removing tokens from circulation. By reducing the overall supply of SHIB, some believe it could drive up the price.
However, burning SHIB has its drawbacks. While it decreases supply, it does nothing to improve liquidityโthe ease with which SHIB can be bought or sold. Liquidity is key for maintaining a stable price, and burning tokens without ensuring enough liquidity could lead to more price swings and increased volatility, not stability.
Burning might reduce the number of tokens in circulation, but it doesnโt necessarily mean there will be more demand or better trading conditions. Instead, it risks making the token harder to trade, which could hurt the market overall.
A Smarter Strategy: Withdrawing SHIB from Exchanges
Rather than burning tokens, a more effective approach could be to take large quantities of SHIB off cryptocurrency exchanges and store them in private wallets. This would reduce the amount of SHIB available for active trading, creating scarcity without the destructive effects of burning.
By removing SHIB from exchanges, the available supply in the open market would naturally decrease, potentially driving the price up. If enough holders store their SHIB in wallets rather than on trading platforms, it could lead to a healthier market, with less volatility and a more stable price.
This approach depends on the collective action of SHIB holders, who would need to actively move their tokens off exchanges and into private storage. While this doesnโt guarantee SHIB will hit $1, it could create the scarcity needed to boost its value without sacrificing liquidity.
The Bottom Line: A Complex Path to $1
The dream of SHIB reaching $1 is captivating, but the road to that price is complicated. Printing $10 trillion USDT is simply not feasible, and burning tokens fails to address the critical issue of liquidity.
A more realistic way to increase SHIBโs price is by reducing its availability on exchanges through widespread storage in private wallets. This would create scarcity while maintaining the liquidity necessary for a functioning market. However, this approach relies on the active participation of SHIB holders and requires a coordinated effort from the entire community.
In the end, SHIBโs price will depend on multiple factors, including market demand, sentiment, and its real-world applications. The road to $1 may be long, but understanding the economic challenges is the first step in navigating it.
