Shiba Inu (SHIB), known for its meme coin status and a fervent community, is under scrutiny as investors ponder the possibility of it reaching the elusive 1 cent mark in 2024. With the average price trading at $0.000009 on January 10, 2024, experiencing a 20% downturn since the start of the year, the path to this ambitious milestone appears challenging but not entirely implausible.
SHIB Holder Activity
In the past two weeks, Shiba Inu holders have shifted a substantial 5.27 trillion SHIB, equivalent to approximately $50 million, out of trading platforms and exchange-hosted wallets. Historical trends suggest that when the supply on exchanges diminishes significantly, SHIB prices often witness a rally. This ongoing transfer of SHIB from exchanges could potentially impact its price in the coming months.
The $0.01 Milestone
To reach the 1 cent milestone in 2024, Shiba Inu would need to surpass its all-time high price of $0.00007924, achieved in October 2021. Achieving this feat requires an astounding increase of 93,533%, a figure that may seem daunting but is not unprecedented in the cryptocurrency market.
Vitalik Buterin’s Role
Investors commonly believe that Vitalik Buterin’s burn activity in May 2021 fueled the previous rally. However, it’s crucial to note that Buterin did not burn $1.7 billion in SHIB to influence its price; this amount was part of the token’s initial allocation. The subsequent transfer of 90% of this allocation to the burn address did not directly impact the token’s price.
May 2021 Surge and Circulating Supply
The surge in SHIB’s price in May 2021 can be attributed to heightened demand as more individuals discovered and invested in the token. Approximately half of the token’s supply was already held by Vitalik Buterin, contributing to a remarkable increase of 46,000,000% since its launch. SHIB has sustained a fivefold increase since May 6, 2021, as the burn tracker Shibburn on X on Sept. 6 indicated.
Just to clarify something on Vitalik Buterin's burn. He did not spend $1.7B in $SHIB to burn on May 2021 for it to have any effect on price then. That was given to him when the token was deployed. Transferring 90% of what was given to him from one wallet to another (burn address)… pic.twitter.com/QCpRAnlIwz
— Shibburn (@shibburn) September 6, 2023
Challenges Ahead
Considering SHIB’s circulating supply on November 24, achieving a value of $0.01 per token would require a significant uptick in investment. This poses a considerable challenge, especially considering the current trading price and historical trends. Reaching the previous all-time high itself demands increased interest and investment in SHIB, making the $0.01 benchmark an even more formidable goal.
The question of whether Shiba Inu can reach $0.01 in 2024 remains uncertain, with various factors influencing its trajectory. While historical trends and past surges offer insights, the cryptocurrency market is inherently unpredictable. Investors and enthusiasts keenly observe SHIB’s movements, eagerly awaiting developments that could potentially propel it towards or hinder it from achieving the elusive $0.01 milestone.
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