Can Shiba Inu Reach $1? Yes, but It Could Take 2 Years! Let Me Explain.
In 2021, the Shiba Inu (CRYPTO: SHIB) token delivered a return of 43,800,000%, which remains one of the most incredible gains in the history of finance. For perspective, Shiba Inu would have turned a perfectly timed investment of just $3 into more than $1 million!
But the token has plunged in value by 92% from its all-time high, leaving many late-coming investors nursing substantial losses. Several factors have contributed to the decline, including negative sentiment toward the cryptocurrency industry as a whole and Shiba Inu's own failure to garner widespread adoption.
Investors initially flocked to cryptocurrencies because they offered a decentralized alternative to traditional money by sitting outside the scope of governments and regulators. But there's a downside to that feature, because when a cascade of failures struck the industry throughout 2022, investors found themselves sitting on catastrophic losses. The collapse of the Terra
Broader sentiment aside, Shiba Inu has also suffered from its own problems. The token's incredible gain in 2021 was driven by speculators, and despite all the attention it was receiving, consumers and businesses were still unwilling to adopt it as a currency. In fact, just 781 merchants accept Shiba Inu as payment worldwide today.
Shiba Inu needs to clear a mathematical hurdle to make further gains
As of this writing, there are 589 trillion Shiba Inu tokens in circulation, and at a price of $0.000007 each, the ecosystem has a market capitalization of around $4.2 billion. If Shiba Inu rose to $1, simple math suggests the ecosystem would have a value of $589 trillion.
Considering all the known wealth held by each individual, business, and government on Earth stood at $463 trillion in 2022, it's absolutely impossible for Shiba Inu to achieve a price of $1 in its current state. The only way it can get there is if the supply of tokens is dramatically reduced#BinanceTournament #ShibaInuPriceForecast #ShibaInuUpdate
