The Shiba Inu army has been waiting for SHIB to attain 1 cent for quite some time now. The latest recovery initiated by the token has now revitalized the community’s hope even further. The second largest meme-coin has inclined by roughly 4% over the past week. At press time, it was seen exchanging hands at $0.00001133.
Shiba Inu and the $0.01 dream
Recently, prominent community influencer ‘SHIB BPP’ chalked out three paths via which Shiba Inu could climb up to $0.01. The first and most crucial condition for the same to transpire is mass adoption. As and when more people enter the SHIB arena, the buying pressure would rise, leading to a price pump.
On paper, several new tie-ups and partnerships have surfaced for Shiba Inu over the past few months. However, on the on-chain front, there has not been a lot of improvement noted. In fact, as analyzed in a recent article, the holding period of Shiba Inu investors has been on the decline of late. Alongside, the average transaction size has also significantly dropped, making it difficult for SHIB to rise. Thus, there is still a long way for SHIB to go to check the mass adoption box for now.
Also Read: Why Is Shiba Inu Struggling In a ‘Bull Market’?
Other crucial conditions
According to the SHIB influencer, staking/liquidity is another condition that will have to be met for the token’s price to attain the said psychological threshold. Theoretically, staking would make an asset deflationary over the long term, adding more bullish pressure to the price. Liquidity injection, on the other hand, would also have a similar impact, making the landscape favorable for a price rise.
For now, with the help of whale buys and retail accumulation, funds have been entering the ecosystem, but there have also been pull-outs parallelly. Thus, when the former completely outweighs the latter, only then would the conditions become favorable for Shiba Inu.
Burning is another condition that the influence pointed out that is crucial for SHIB to rally to $0.01. On a daily basis, large amounts of tokens are destroyed by sending them to dead wallet addresses. With time, as and when the asset becomes scarce, its value would rise. That said, it should be noted that there have been several instances in the recent past when the rise in the burning rate has not necessarily translated into a parallel price hike.
Thus, it should be borne in mind that SHIB’s valuation will not incline straight off the bat. In fact, Ethereum’s case is a typical exhibit of the same. Only when the right balance between the demand, supply, and burning dynamics is struck, would a seamless long-term appreciation transpire.
Footnote
As highlighted in a recent article, Shiba Inu would need to have a market valuation of approximately $6.5 trillion to reach the 1 cent per token mark. The number seems to be next to impossible to attain over the short or mid-term. The said figure is bigger than Apple, Microsoft, Tesla, and Ford’s market cap combined.
In fact, the entire crypto market cap’s valuation currently stands at only $1.28 trillion. Thus, we’d have to wait for multiple bull runs to take place before SHIB’s market cap balloons up to the said level. Only when that happens, would it hit 1 cent.
Also Read: How Long Will Shiba Inu Take To Reach $0.01? Let’s Do the Math