In the first week of this month, that is March 2024, the price of Shiba Inu (SHIB) has tripled in a matter of a few days. However, this meme token is still priced at $0.00002584.
The $ 1 mark is considered to be a psychologically important price in the crypto market. Crossing that barrier is seen as an indication that the market perceives the token as a genuine and useful asset. Can SHIB achieve this? Let’s find out in this article.
What is Shiba Inu (SHIB) All About?
Shiba Inu is a meme token that began as a fun currency and has now captured mainstream attention as a meme coin.
It was built on the Ethereum blockchain and features the Japanese hunting dog Shiba Inu as its mascot. Shiba Inu is considered an alternative to Dogecoin and its supporters are known as SHIBArmy.
The Shiba Inu community has been able to develop a range of DeFi apps, products, and NFTs with the help of smart contracts in the Ethereum mainnet.
This makes SHIB a utility-driven cryptocurrency as compared to other meme coins like DOGE coin. Moreover, the creator of Shiba Inu, who remains anonymous has stated that he owns zero SHIB to remain unbiased.
Shiba Inu (SHIB) Past Performance
As of the latest data, the price of SHIB is $0.00002575, up 1.5% from yesterday.
The market cap is approximately $15.18 billion with a 24-hour trading volume of around $2.3 billion. The circulating supply is 589,265,558,325,684 out of a total supply of 999,982,365,709,4381. Pay attention to these last numbers. We will talk more about it later.
In 2023, SHIB gave a 30% return to its investors. Not bad, right? Compared to what, we should ask. In 2021, SHIB delivered a whopping return of 43.8 million percent.
That’s insanely high, even by crypto investment standards. However, the token’s price now stands at a tenth of its peak price.
Can SHIB Reach $1?
As I have mentioned SHIB is now trading at $0.000025, which is one-forty thousandth of a dollar. This means that the token needs to become 40,000 times its current price to hit that $1 mark.
Some behind-the-hand calculations would tell us that this needs a 4 million percent price appreciation, a very demanding target indeed.
But remember that only a couple of years back, SHIB’s price has gone up by 40 million percent. We just need one-tenth of it now.
What’s Preventing SHIB to Reach $1?
Recollect that the total supply of SHIB is 589,265,558,325,684 or roughly 589 trillion. If SHIB price hits the $1 milestone, its market cap will be $589 trillion. To put things in perspective, the entire crypto market cap is only $2.4 trillion and the total United States GDP in 2023 is less than $30 trillion. Thus it is practically impossible for SHIB to hit the $1 mark.
Or is it? As I said, it is not practical for SHIB to hit $1 at the existing token supply. But there is a catch. If the creators implement a token-burning mechanism that systematically burns the number of tokens, this $1 target will, all of a sudden, become entirely possible.
If 95% of the tokens are burnt today, the price of SHIB will instantly hit the $1 milestone. However, this wouldn’t directly affect the token’s value or benefit the investors.
Conclusion
Shiba Inu is a dog-themed meme token that has been created as a ‘Dogecoin-killer’. However, since then the token has gained a loyal user base and investor interest in the crypto space.
In the last few years, SHIB saw some wild ups and downs including astronomical gains. As it stands now, it is not practical for SHIB to reach the $1 roof, without any gimmicky token reallocation mechanisms.
