Shiba Inu: Why The “One Cent Dream” May Not Be A Reality

Explore the reasons that the Shiba Inu’s objective of reaching a one-cent value might stay simply a dream, considering market aspects and future obstacles.

Shiba Inu (SHIB) investors and fans have long pursued the “one-cent” dream. The asset’s price needs to rally by around 82069.27% to hit the $0.01 target. While the gains needed to hit the $0.01 target may seem substantially large, it is not something that SHIB has not done in the past. SHIB’s price rallied by numerous million percentage points within its first year of launch. Despite displaying amazing growth in the past, hitting the $0.01 mark may not be realistic. Let’s discuss why.

Why Shiba Inu’s 1-Cent Dream Might Not Come True

One significant reason why SHIB might never hit $0.01 is its huge circulating supply. There are nearly 589 trillion SHIB coins in circulation right now. The project’s market cap will reach $5.89 trillion if the price of each coin hits $0.01. This figure is larger than the GDP of most countries. It is highly unlikely that Shiba Inu’s market cap will hit the $5 trillion mark.

The most significant driver for SHIB’s incredible 2021 rally was Vitalik Buterin’s massive token burn. Buterin received about 500 trillion SHIB tokens upon the project’s launch. The Ethereum founder decided to burn 90% of the coins he received. This led to a significant dip in supply. The reduced supply and high demand caused SHIB’s price to skyrocket.

Can The Project Undertake Another Big Burn?

Shiba Inu already has a burn mechanism in place. While the number of tokens is slowly decreasing, the rate of destruction is significantly lower than what is required for the coin to hit $0.01. Lead developer Shytoshi Kusama also highlighted how burns alone will not result in higher prices. The coin needs to have substantial demand.

The Shiba Inu team is working on a new burn system as we speak. Despite reports of the new burn mechanism being able to destroy trillions of coins annually, we do not have official word on how it might work. We could hit the $0.01 mark if Shiba Inu can drastically reduce its supply.

While the gains needed to hit the $0.01 target may seem significantly large, it is not something that SHIB has not done in the past. Why Shiba Inu’s 1-Cent Dream May Not Become A Reality One major reason why SHIB might never hit $0.01 is its massive circulating supply.

The Shiba Inu team is working on a new burn mechanism as we speak. We could hit the $0.01 mark if Shiba Inu can drastically reduce its supply.