Although meme coins have been around since 2013, when Dogecoin was created, it was in 2021 that they became mainstream. Their popularity was mainly due to the promotion of Dogecoin by popular people such as Elon Musk and Mark Cuban. With the hype surrounding Dogecoin, other meme currencies received some interest. But in the end, the big winners were Dogecoin and Shiba Inu.
Shiba Inu is a meme currency created in August 2020 by an anonymous individual named Ryoshi. Its name is based on the Shiba Inu dog from Dogecoin, and they both have similarities. The only significant difference is that the creator built Shiba Inu on the Ethereum network. Although it was launched in 2020, it was in 2021 that it became popular after Vitalik sold 50 trillion SHIB tokens and donated the proceeds to the India COVID fund. SHIB has risen more than 85,000,000% in a year and hit its all-time high on October 28, making it the most prominent example of a monumental bull run in crypto in recent years.
Its meteoric rise has prompted many to speculate whether it could rise even higher. In this article, we’ll discuss Shiba Inu’s prospects of hitting major price milestones and explore SHIB’s price predictions.
Will the Shiba Inu coin reach $1? Unlikely
Shiba Inu’s performance in 2021 was spectacular, and many expected it to continue the same run the following year. However, due to the general decline of the crypto-currency market, this did not happen. Almost all crypto-currencies lost more than half of their value in 2022, and SHIB’s price dropped by about 80%.
However, with the crypto-currency market starting 2023 on a bullish note, we have seen some renewed interest in crypto-assets, including meme currencies. This could make Shiba Inu one of the main cryptos to explode in 2023.
Why won’t the Shiba Inu coin reach $1?
The 2022 decline is not the reason why the Shiba Inu coin will probably not reach $1. Rather, this is due to several unique features of the token. Since it is an ERC-20 token, meaning it is compatible with the Ethereum blockchain, Shiba Inu already has some advantages over Dogecoin. But it will take more to reach $1, due to its massive supply. Shiba Inu has a total supply of 1 quadrillion tokens. Its current outstanding supply is about 550 trillion tokens.
By simple math, if the SHIB coin were to reach $1, that would mean it has a market capitalization of $550 trillion. The possibility of such a price action taking place is theoretically impossible, given that the global GDP of all countries is just around $100 trillion. At its peak, the total market capitalization of crypto-currencies was just over $3 trillion.
*using 550 trillion SHIB in circulation as a base.
|SHIB price||Market capitalization of Shiba Inu|
|$0.0001||55 billion dollars|
|$0.001||550 billion dollars|
|$0.01||5.5 trillion dollars|
|$0.10||55 trillion dollars|
|$0.50||275 trillion dollars|
|$1||550 trillion dollars|
As can be quickly deduced from the above table, the probability of the price of Shiba Inu approaching $1 at current levels of outstanding supply is simply impossible. Even reaching lower prices, such as $0.01 or even $0.001, seems very difficult. While Dogecoin has a strong chance of reaching $1 in the future, we cannot say the same for Shiba Inu, at least not in its current state.
Another point against SHIB reaching $1 is its supply inflation – according to our data, Shiba Inu supply has increased nearly 8% year-over-year, making SHIB’s prospects of reaching a $1 milestone all the more unlikely.
What could improve SHIB’s chances of reaching $1?
Although the possibility of Shiba Inu’s coin being worth $1 is slim, it is not impossible. It could happen if enough SHIB chips are burned. Burning the SHIB token is a way to reduce the total supply. So far, more than 410 trillion SHIB tokens have been burned, most of them due to Vitalik Buterin. If more chips are burned, demand will increase as supply decreases. But a significant amount of chips would have to be burned for the price to reach $1.
Also, developing more utility for the Shiba Inu coin will help its value. In general, the burning mechanism of SHIB depends on its use. The more it is used for transactions, the higher the burn rate. The team behind SHIB has already tried to create more utility for the token with other related projects, such as Shiboshis (Shiba Inu NFTs) and ShibaSwap DEX. It is also working on an Ethereum Layer-2 solution, Shibarium, and a Shiba Inu Metaverse. All of these developments will improve the functionality of Shiba Inu and may increase its price. But that will depend on the success of the projects and their ability to increase the level of adoption of Shiba Inu.
Will the Shiba Inu coin reach 50 cents?
Once again, as with the $1 price mentioned earlier in the article, the short answer to the question of whether the Shiba Inu coin can reach 50 cents is “no”. As before, the primary limiting factor is the outstanding supply of SHIB, which at current amounts would produce a market capitalization of $275 trillion if the meme coin reached the $0.50 mark.
We concede that this answer could change dramatically in the future. Some believe that the supply of SHIBs in circulation will decrease dramatically after the launch of the Level 2 Shibarium network, which will burn SHIBs for every transaction. However, there is little evidence to suggest that the burn rate will be sufficient to propel the price of Shiba Inu to 50 cents.
Shiba Inu price forecast for 2023 and 2024: Will the SHIB reach 1 cent?
Although the answer to the question “Will Shiba Inu reach $1?” or probably “not“, the possibility of the coin reaching 1 cent is much higher than 1 dollar or 50 cents. This does not mean that it is a certainty. In fact, it is still very unlikely, but it is theoretically possible.
This could be similar to the run of Dogecoin itself. In 2015, Dogecoin was also worth $0.00008690. But it wasn’t until 2021 that it was worth a penny. There is a 0.977 correlation between the price of Dogecoin and Shiba Inu over the past seven days, and as meme coins, both tokens have had similar price performances. Therefore, it is possible that Shiba Inu will also reach 1 cent.
Given that it is currently worth $0.00001432, crossing all of these decimal points will require extraordinary market performance. It could even take years of sustained positive performance for this to happen. According to CoinCodex’s forecast, SHIB will not be worth 1 cent in 2024. In the best-case scenario, it predicts that the price of SHIB could reach $0.000270 by February 2024, based on technical analysis data aggregated on February 6.
However, price forecasts are not set in stone, as market conditions can change dramatically. The volatility of the crypto-currency markets makes it impossible to determine what SHIB would be worth even in the next 24 hours. Thus, the meme token could defy SHIB’s price predictions and reach 1 cent sooner than expected.
Can the price of Shiba Inu reach $1? Here is the final result
Unless something fundamental, like its volume, changes, Shiba Inu won’t reach $1, or even 50 cents for that matter. But it could reach 1 cent after a few years of symbolic burns and deflationary mechanics. Either way, Shiba Inu is one of the best sub-1 cent cryptos to buy, thanks to its vibrant ecosystem and robust community.
When it comes to crypto-currencies, price unpredictability is always a major factor. Therefore, it is essential to research any crypto-currency before deciding to invest in it.