The Shiba Inu coin reaching $1 at its current circulating supply is impossible. Given that there are 589 trillion SHIBs in circulation, Shiba Inu is said to have a market capitalization of $589 trillion, which is far more than the value of all stocks, fiat currencies, and other assets in the world combined.
However, that doesn’t mean that Shiba Inu can’t or never will reach $1. Indeed, recent developments in the Shiba Inu ecosystem, namely the shibarium layer 2 solution, are related to SHIB token burning and supply reduction, which would make each token all the more valuable.
In this article, we will explore the factors that could influence the price of SHIB and discuss the possibility of it reaching the $1 cap.
Will the Shiba Inu coin reach $1?
Shiba Inu reaching $1 at current token supply levels seems impossible. However, this does not mean that SHIB might not reach $1 in the future, especially if the proposed blockchain changes go into effect.
In the following sections, we will present the arguments for and against SHIB reaching $1.
What could help Shiba Inu reach $1
The main reason that many SHIB investors and many analysts believe that Shiba Inu could reach $1 in the future is Shibarium, a layer 2 solution that aims to make transactions in the Shiba Inu ecosystem both faster and less expensive. Not only that, each Shibarium transaction will burn SHIB tokens, effectively reducing the supply of the token.
According to the Shibarium documentation, each transaction on the Layer 2 platform will incur a base fee, of which 30% will be reserved for network maintenance and 70% for token burning. Initially, transaction fees will be paid in Bone ShibaSwap (BONE), which will accumulate in the designated smart contract for token burns. BONE will then be transferred to Ethereum (the native blockchain of SHIB), where it will be exchanged for SHIB and burned using the corresponding smart contract operation. The exchange between BONE and SHIB will be included directly in the burning mechanism, with no manual user interaction required.
— SHIB INFORMER (@ShibInformer) May 21, 2023
In May, a prominent member of the Shiba Inu community who goes by the name “ShibInformer” on Twitter posted an “UI preview of the SBHI burning mechanism in Shibarium.” It shows the amount of OS ready to be burned and the option “initiate the burn”.
Although there is no exact date for the release of Shibarium, it is widely expected that Shibarum will launch in 2023.
The obstacles that could prevent Shiba Inu from reaching $1
Although it is impossible to predict the future price of any cryptocurrency with certainty, reaching $1 represents an impossible milestone for SHIB. It is crucial to consider the circulating supply of SHIB tokens, which is in the trillions. The table below shows the implied market capitalization of Shiba Inu at different hypothetical price levels.
|SHIB Price||Shiba Inu Market Cap|
|0.00000741 (current price)||$4.37 billion|
In the meantime, here are the market caps of top-tier assets and companies:
|Apple (the most valuable company in the world)||$2.98 billion|
|US dollar (money supply M2)||$23.37 trillion|
|US stocks||$40.51 trillion|
As we can see from the chart above, Shiba Inu reaching $1 at the current circulating supply is completely out of the question.
Additionally, SHIB price is likely to overcome numerous resistance levels as it moves towards $1, facing potential selling pressures and profit taking along the way. These milestones are influenced by various factors, including those mentioned previously, and sentiment can change quickly within the cryptocurrency market.
Shiba Inu Price Prediction 2023-2024: $1 Is Out Of The Question, Just Like 1 Cent
According to our Shiba Inu Price Prediction Algorithm, the SHIB price is expected to increase in double digits by the end of September. After that, SHIB could rally substantially towards the end of the year and reach $0.00004388, which would represent a +499% increase by the end of the year.
In the first part of 2024, our algorithm predicts a slight retracement in the value of Shiba Inu, with the price of SHIB pulling back a little to $0.00004203, showing a +474% increase from current market rates. Keep in mind that predicting the future price trajectory of cryptocurrencies is particularly difficult due to their inherent volatility.
Either way, Shiba Inu shouldn’t reach $1 or even “only” 1 cent, for that matter. In fact, Shiba Inu would have to rise from its predicted price of $0.00004388 in December 2023 by a whopping +23,693% in order to claim the 1 cent milestone.
So can Shiba Inu reach $1?
If nothing drastically changes with the Shiba Inu tokenomics, there’s no way SHIB will ever reach $1, or even lower price milestones like 1 cent. However, if the proposed changes to the Shibarium come into effect soon and burn a substantial amount of SHIB, we could see the value of the Shiba Inu coin increase massively. This potential for price growth is one of the reasons why Shiba Inu is on our list of the best cryptos to buy right now.
With its impressive bull run in 2021, Shiba Inu has demonstrated that there is a huge market for meme coins, prompting other cryptocurrency projects to follow in its footsteps and causing many investors to wonder which meme coin could be the next Shiba Inu.
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