Shiba Inu (SHIB) had a historic rise to stardom in 2021 when the asset skyrocketed in value. What followed was stories of regular people becoming multi-millionaires and some even billionaires. However, the popular dog-themed crypto project has since fallen over 89% from its 2021 highs. Nonetheless, fans and users continue to hold the “one cent” dream for the memecoin.
How can Shiba Inu reach $0.01 or $1?
One of the major problems with SHIB is its massive supply. There are about 589.3 trillion SHIB tokens in circulation. If the asset were to reach $0.01, SHIB’s market cap would reach over $5 trillion. If SHIB reaches $1, its market cap would be an unimaginable $589 trillion. This would make SHIB, the most valuable company in the world. Most nations in the world do not have a GDP that high. In reality, this does not seem feasible.
Therefore, the SHIB community has tirelessly been working to reduce the assets circulating supply. If Shiba Inu (SHIB) is to reach a goal of $0.01, or even $1, it would need to significantly reduce its supply to about 6 billion. However, therein lies the problem. Just 3.3 billion tokens were burned by the community in the previous month. With a consumption rate of 39.6 billion per year, it would require an incredible 14,881 years to exhaust the supply to just 6 billion.
Even if users found a way to burn down SHIB’s supply to 6 billion, at a price of $1, it would lead to the asset’s market cap being $6 billion- which is about what it is right now. However, to do that one would also need to burn tokens held by investors, as many hold billions of tokens. Therefore, even burning off SHIB’s supply poses many problems. SHIB would need to become some sort of deflationary asset if it were to increase in value at that rate. At press time, SHIB was trading at $0.00000905, up by 2.5% in the last 24 hours.