Shiba Inu (SHIB) enthusiasts and investors have long held onto the ambitious goal of reaching the “one-cent” milestone. However, for SHIB to hit the $0.01 target, its price would need to surge by an astounding 82,100%. While this figure may seem insurmountably high, it’s worth noting that SHIB has achieved extraordinary gains in the past.
In its first year after launch, SHIB’s price skyrocketed by millions of percentage points, capturing the attention of the crypto community and marking itself as one of the most explosive tokens in the market. However, replicating such a massive rally now may be far more challenging due to a number of factors.
While SHIB has a history of explosive growth and remains a favorite in the meme coin sector, the “one-cent dream” may not be realistic given the current market dynamics and economic limitations. Instead, SHIB’s future growth may lie in smaller, sustainable gains and continued development within its ecosystem. Can it reach the $0.01 mark? Let’s discuss why.
Why Shiba Inu (SHIB) Reaching 1-Cent Dream May Not Become A Reality
One of the primary reasons SHIB is unlikely to ever reach $0.01 lies in its enormous circulating supply. Currently, there are approximately 589 trillion SHIB coins in circulation. For SHIB to hit $0.01, its market capitalization would need to skyrocket to an astronomical $5.89 trillion. To put this in perspective, this figure surpasses the GDP of most countries and is significantly larger than the market cap of established tech giants like Apple or Microsoft.
The most significant driver of SHIB’s remarkable 2021 rally was Ethereum co-founder Vitalik Buterin’s massive token burn. Upon the project’s launch, Buterin was gifted about 500 trillion SHIB tokens by the developers, a move often criticized as a marketing ploy. In a surprising and impactful decision, Buterin chose to burn 90% of the tokens he received by sending them to a dead wallet, effectively removing them from circulation.
He also donated the remaining SHIB to charity. This massive token burn significantly reduced the circulating supply, creating scarcity amidst high demand, which in turn caused SHIB’s price to skyrocket. While token burns can temporarily boost prices by reducing supply, they are not a sustainable strategy to maintain long-term value.
Is the Shiba Inu Project Ready for Its Next Big Burn?
Shiba Inu already has a burn mechanism in place, gradually reducing the total supply of tokens. However, the current rate of token destruction is far too low to achieve the much-anticipated $0.01 mark. For Shiba Inu to reach this price point, a significant reduction in supply is critical, but that alone won’t be enough. Lead developer Shytoshi Kusama has emphasized that burns must be accompanied by substantial demand for the coin to see meaningful price increases.
To address this, the Shiba Inu development team is actively working on a new and improved burn mechanism. Reports suggest that this upcoming system could potentially destroy trillions of tokens annually, potentially accelerating the path to price targets like $0.01. However, the team has yet to release official details on how the mechanism will function or when it will be implemented.
Also Read: Shiba Inu (SHIB): Will 20 Trillion Annual Burns Push SHIB to $0.001?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
