|
Getting your Trinity Audio player ready...
|
The Shiba Inu (SHIB) community is known for its unwavering enthusiasm, and this optimism has fueled some truly ambitious price predictions. Among the most talked-about is the possibility of SHIB reaching the coveted $1 mark. While the idea excites many within the “SHIB Army,” a closer look at market dynamics and tokenomics reveals the significant hurdles that lie ahead.
The Trillion-Dollar Reality Check for SHIB’s $1 Target
Reaching a $1 valuation for Shiba Inu would necessitate an astronomical surge in its market capitalization. According to a recent analysis by Bitcoin bull Davinci Jeremie, SHIB would require a market cap of approximately $600 trillion to achieve this price. To put this into perspective, this figure dwarfs the current market cap of gold, estimated at $22.41 trillion. This means SHIB’s market cap would need to grow by an astounding 2,577% compared to the precious metal. While Shiba Inu’s marketing lead, Lucie, recently shared ChatGPT’s opinion that reaching $1 isn’t “impossible,” the AI also emphasized the need for a “perfect storm” involving a major bull run, widespread adoption, and consistent token burns. Currently trading at $0.00001319 with a market cap of $7.77 billion, SHIB would need an eye-watering 7,581,401% increase to hit the $1 target.
Also Read: Shiba Inu (SHIB) Primed for Upswing? Bullish Technical Analysis Meets Exploding Burn Rate
The Burn Strategy: A Long and Winding Road
Proponents of a $1 SHIB believe there’s an alternative path that doesn’t involve a multi-trillion dollar market cap: a massive reduction in the token’s circulating supply through burns. To reach $1 while maintaining its current $7.77 billion market cap, roughly 99.9987% of Shiba Inu’s total supply would need to be burned, leaving only 7.77 billion tokens in circulation. While technically feasible, the current burn rate makes this scenario highly improbable in the foreseeable future. Data from Shibburn indicates a monthly burn rate of around 15.64 billion SHIB.
At this pace, it would take an estimated 3,141 years to burn the required 99.9987% of the supply. While token burns can contribute to price appreciation by reducing supply, the sheer scale required for SHIB to reach $1 at its current market cap presents a monumental challenge given the current burn dynamics.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
