Shiba Inu remains a popular cryptocurrency, and its community and analysts speculate that the token could reach a $1 valuation. However, achieving this milestone would require significant changes to its circulating supply. The token’s supply is too large to support such a price, making extensive token burns necessary.
Assessing the Feasibility of the Token Reaching $1
Despite recent market downturns, Shiba Inu still attracts investor interest. Some look for bullish signals, and others predict potential price rebounds. Javon Marks has made several predictions about SHIB and has projected mid-term targets as high as $0.0001553. Meanwhile, other investors have set long-term price goals at $0.001 and $0.01.
While these targets may seem ambitious, discussions have also emerged about the possibility of the token reaching $1. However, the biggest obstacle to this price level is its massive circulating supply, which currently stands at approximately 589 trillion tokens.
To put this into perspective, if the token would reach $1 without any reduction in supply, its total market capitalization would soar to $589 trillion—an unrealistic valuation that far exceeds the combined global economy. As a result, a drastic reduction in token supply would be required for the asset to achieve a $1 price point.
Last August, the prominent crypto exchange CoinW suggested that SHIB could reach $1, asking the community whether Dogecoin or Shiba Inu would hit the milestone first. Notably, Dogecoin priced at $0.2455, remains significantly closer to this target than SHIB.
How Much Supply Would Need to Be Burned?
Token burning is the primary method for reducing a cryptocurrency’s supply and potentially increasing its value. In the case of Shiba Inu, developers and community members have regularly burned tokens to shrink circulation. However, the scale of burns needed to push the asset to $1 is unprecedented.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Lead developer Shytoshi Kusama recently speculated that SHIB could eventually reach a $1 trillion market cap. To analyze a more feasible scenario, we consider the possibility of the token attaining a $500 billion market cap instead.
For SHIB to be worth $1 with a $500 billion market cap, the circulating supply must be reduced to 500 billion tokens. This means that 588.5 trillion tokens—approximately 99.91% of the current circulating supply—would need to be burned.
Is a Massive Token Burn Realistic?
Despite ongoing burn initiatives, the rate at which SHIB is being removed from circulation is not nearly fast enough to support a price increase to $1. Even with aggressive burns, eliminating such a large percentage of tokens would be an immense challenge.
While token remains an active and widely followed project, reaching $1 is highly improbable under its current tokenomics. Even with significant burns, achieving such a price would require an unprecedented supply reduction with a massive increase in market capitalization.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter , Facebook , Telegram , and Google News
