Considering the significant decline in #ShibaINU trading value from its peak and its previous impressive performance, there is a chance that the cryptocurrency could experience another significant surge. Certain individuals have even speculated that it might eventually reach a price of $1 per token, which could potentially transform a $100 investment in the token today into an amount exceeding $12 million. Is it feasible for this scenario to unfold?
For Shiba Inu to achieve a price of $1 per token, it would need to experience a staggering rally of over 12,400,000% from its current token price. While there are potential catalysts that could trigger a strong bullish run for this meme #cryptocurrency , reaching such an ambitious target price is virtually impossible.
This is because as something grows larger, it becomes increasingly challenging to sustain relative growth. Even small increases in adoption or other catalysts can have a much more significant impact on assets or equities that start at lower valuation levels. This phenomenon partly explains why Shiba Inu was able to achieve such explosive gains throughout 2021.
Considering that Shiba Inu has already risen by more than 14,200,000% from its initial price, it is highly unlikely that it can replicate that level of increase from its current valuation. Despite the fact that the jump needed to reach $1 may seem smaller in terms of percentage-point increase compared to what the token has already achieved, such performance is almost certainly unattainable.
Even if Shiba Inu's circulating coin count were reduced from 589 trillion to 100 trillion through burning (permanently removing tokens from circulation), it would still have a market capitalization of $100 trillion at a price of $1 per coin. To put this into perspective, the total combined gross domestic product of all economies worldwide was $101.6 trillion in 2022.
In simple terms, holding onto the hope that Shiba Inu will reach $1 per token is akin to chasing an unattainable goal. However, it is still possible.
What factors could contribute to a rise in Shiba Inu's value?
Despite experiencing a decline in its coin price in recent years, Shiba Inu continues to enjoy strong support from a large and passionate community of followers. Remarkably, SHIB has achieved remarkable gains despite its primary use case being limited to a payment mechanism or speculative asset.
If there is a broader surge in cryptocurrency valuations, Shiba Inu may see a significant increase in its value as more people place their bets on the coin. Additionally, the team behind Shiba Inu has been actively working on expanding the token's ecosystem and enhancing its features.
In the second half of this year, the organization plans to launch Shibarium, a Layer-2 solution that will establish a more efficient connection between Shiba Inu and the underlying #Ethereum network. By improving transaction speeds and reducing costs, Shibarium aims to facilitate increased adoption and provide enhanced functionality within the token ecosystem.
Furthermore, the Shiba Inu organization is preparing to introduce "SHIB: The #Metaverse. ," a virtual world that could potentially boost the value of its namesake cryptocurrency. Within the metaverse, users will be required to burn Shiba Inu tokens to name plots of land. This burning process will decrease the total circulating supply of the token, potentially creating conditions conducive to price appreciation.
A lot of things are going on around the SHIBA ecosystem. Reaching the US$ 1 goal seams, at the very least, far fetched. But that doesn't mean that the price can't rise from its current level.
Time will tell. SHIB always deserves our attention.
*Disclaimer: This is NOT an investment advice. Is just an analysis of an uncertain future of a coin. TRADING is risky and you should ALWAYS Do Your Own Research! Do not trust anyone but you own knowledge.
