Formed as a sign of knowledge for the DOGE meme, SHIB has become coveted not just by investors but by major crypto exchanges — with the likes of Binance and Coinbase quickly working to list the small-cap altcoin. After the mania, SHIB sits 85% off its all-time high of $0.000086.
What will it take for Shiba Inu to reach $1? Is such a feat possible?
Ostensibly, it’s no surprise that SHIB experienced its first parabola spike in early May 2021. This period was marked by the minting of countless meme codes designed to emulate Dogecoin’s success and gathering in a similar fashion to GameStop and AMC Entertainment on Wall Street.
During this period, we’ve seen a wave of Dogecoin-themed, or even imitation, acclaim hit the market, with many creators also incorporating Elon Musk’s DOGE fanatic into their freshly minted coins.
With the rise of assets like Dogelon Mars (ELON), Baby Doge Coin (BabyDoge), Samoyedcoin (SAMO), and Shiba Predator (QOM), investors have plenty of options when it comes to investing in meme-based assets. However, a year later, the only coin that came close to having Dogecoin’s staying power was Shiba Inu, which is currently the 14th largest cryptocurrency by market capitalization. There is no other meme coin outside of the DOGE or SHIB ranking within the top 100 coins.
So what makes Shiba Inu so special? And why did Coinbase and Binance move to list the asset so quickly?
Although it first appeared in May 2021, Shiba Inu was created on the Ethereum blockchain in August 2020. The originator is completely anonymous, and the terms of its creation are uncertain. The only purpose he thought SHIB served was to become a “Dogecoin Killer”, although this is likely more of a joke than a threat.
SHIB Ecosystem Explanation
Interestingly enough, the Shiba Inu ecosystem consists of more than just SHIB; There are also cryptocurrencies called LEASH and BONE. While LEASH is very limited, with only 107,000 tokens in circulation, BONE, as Shiba Inu’s ruling token, has a much larger volume of 250,000,000 tokens.
Crucially, SHIB has a total supply of 999.99 trillion tokens, making it more popular than DOGE’s current trading of around 133 billion tokens. However, it is worth noting that in May 2021, half of Shiba Inu’s token supply was sent to Vitalik Buterin, co-founder of Ethereum. Buterin decided to burn 90% of his tokens and donate the rest, causing the circulating supply of SHIB to drop to around 589 trillion.
As the Shiba Inu price history shows, the cryptocurrency has never approached a cent, let alone a dollar. Circulating supply plays a major role in determining this low price. With the trillions of SHIB currently in circulation, there is no dearth of offering a higher USD value of the asset, although the coin currently ranks higher than more expensive tokens such as AVAX, ATOM, and LINK.
In terms of practical use, Shiba Inu is almost useless. The original simply exists to be the world’s most recognizable meme token, which means it’s only backed by market sentiment and pre-existing crypto cycles.
However, the popularity of SHIB cannot be understated, and positive sentiment towards the coin has already seen extraordinary growth from 2021 and throughout 2022. A host of retail outlets such as GameStop, which allowed us to make in-store purchases with SHIB.
These feats are uncommon for tokens created in the wake of Dogecoin, and are a reminder that it is not always wise to write this particular meme entirely.
Can a Shiba Inu be priced at $1?
So, can a Shiba Inu be priced at $1? The answer is almost certainly not – or at least not at current trading levels.
The current market capitalization of Bitcoin, which typically ranges around $10,000, is driven by the currency’s constant scarcity of a maximum supply of 21 million tokens that can ever be minted. At around 589 trillion tokens, SHIB’s market cap would need $589 trillion to reach the value of $1 coin. considering that motley ful You recently stated that the total global wealth is around $500 trillion, which is a mind-boggling number to come to terms with.
However, if the circulation of the Shiba Inu drops significantly, such as when Vitalik Buterin burned half of the total supply of the coin, then greater scarcity could affect the value of the coin.
For investors, there are a few encouraging signs. The creation of SHIB on the Ethereum blockchain means it is much more accessible than other micro-meme tokens, and has paved the way for the likes of Binance and Coinbase to add the asset to their own options with relative ease.
SHIB adoption may increase despite decreasing value
With such high levels of adoption, investor sentiment appears to have benefited most from SHIB’s usability, and the fact that stores have started accepting the cryptocurrency means that some form of utility has been rigged to the coin.
As for the path to $1, let’s take a deeper look at a more reasonable trading level. The closest asset to Shiba Inu by market capitalization and near $1 is Polygon (MATIC), which is valued at $0.85 at the time of writing. The circulating supply of this coin is 7.44 billion dollars. Using this as an indicator, it means that SHIB’s circulating supply would need to drop to close to 100,000 from its current level to experience the same price in the current crypto market.
For investors who believe in the potential of cryptocurrencies, we are pretty confident that a new cryptocurrency market will help create a strong market rally that will pull more prices higher, but in terms of growth, it is extremely rare for an asset to be solid. . To muster 100,000% this way.
SHIB is still a coin to watch out for
Although Shiba Inu is a prime example of a meme coin success story, SHIB’s supply of 589 trillion tokens in circulation made the notion of a rally to $1 impossible — except for the sudden deflation of the coins in circulation.
Despite this, a flurry of positive sentiment created a layer of utility for the token. Investors may find that SHIB can continue to build momentum long into the future, making it one of the most promising and sustainable meme-based investment options.
The information on this website does not constitute, and should not be considered, financial advice, investment advice or trading advice. MakeUseOf does not advise on any trading or investment matters and does not advise that any particular cryptocurrency should be bought or sold. Always perform your own due diligence and consult a licensed financial advisor for investment advice.