Shiba Inu (SHIB) fans and investors have long awaited the asset to delete a few zeros from its price and breach the $1 mark. However, the popular memecoin has been on a downward trajectory after reaching its all-time high of $0.00008616 in October 2021. SHIB is currently down by over 89% from its 2021 highs.
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Despite the lackluster performance in 2022 and 2023, SHIB fans continue to support the asset. The loyal community is one of SHIB’s greatest strengths. A robust community is a positive sign for a project’s future growth.
How can Shiba Inu (SHIB) reach $1?
SHIB’s massive supply is one of the most significant barriers to its price reaching $1. The project currently has a circulating supply of around 589 trillion. If the asset reaches $1, the project’s market cap will hit $589 trillion, a very unrealistic figure. For context, Apple and Microsoft, two of the biggest companies in the world, have a shared market cap of around $5.7 trillion. If SHIB reaches $1 with its current supply, it will be 100 times bigger than Apple and Microsoft combined.
Therefore, Shiba Inu’s (SHIB) supply has to significantly reduce for its price to hit the $1 mark. The project has to burn 99.999% of its supply for SHIB’s price to reach $1.
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The Shiba Inu (SHIB) team revealed that the Shibarium network will automate burns from January 2024. Moreover, the team is working on a new burn mechanism, rumored to incinerate trillions of tokens yearly. However, even if the new burn mechanism destroys 1 trillion tokens monthly, it would take the project a long time to remove 99.999% of its supply. SHIB has to undertake a burn similar to Vitalik Buterin’s 2021 SHIB burn. Buterin received half of SHIB’s supply when the token launched in 2020. However, Buterin decided to burn 90% of the tokens he received. Buterin’s decision significantly helped SHIB’s 2021 epic rally.