The Shiba Inu coin reaching $1 at its current circulating supply is impossible. Given that there are 589 trillion SHIB in circulation, Shiba Inu would have a market cap of $589 trillion, which is many times more than the value of all equities, fiat currencies, and other assets in the world combined.
However, that doesn’t mean that Shiba Inu cannot or never will reach $1. In fact, the recent developments in the Shiba Inu ecosystem, namely the Shibarium layer 2 solution, are related to burning SHIB tokens and bringing the supply down, which would make each token that much more valuable.
In this article, we will explore the factors that could influence the price of SHIB and discuss the possibility of it reaching the $1 milestone.
Will Shiba Inu coin reach $1?
Shiba Inu reaching 1 dollar at current token supply levels seems impossible. However, that doesn’t mean that SHIB might not reach $1 in the future, especially if the proposed blockchain changes come into effect.
In the following sections, we are going to present the arguments in support and in opposition to SHIB reaching $1.
What could help Shiba Inu reach $1
The main reason why many SHIB investors and quite a few analysts believe that Shiba Inu could reach $1 in the future is Shibarium, a layer 2 solution that aims to make transactions in the Shiba Inu ecosystem both faster and cheaper. Not only that, each Shibarium transaction will burn SHIB tokens, effectively reducing the supply of the token.
According to the Shibarium documentation, each transaction on the layer 2 platform will incur a basic fee, out of which 30% will be set aside for network maintenance, and 70% for the token burn. Initially, the transaction fee will be paid in Bone ShibaSwap (BONE), which will accumulate in the smart contract designated for token burns. BONE will then be transferred to Ethereum (the native blockchain of SHIB), where it will be exchanged for SHIB and burned using the relevant smart contract operation. The swap between BONE and SHIB will be included in the burn mechanism directly, with no manual interaction from users required.
In May, a prominent Shiba Inu community member who goes by the name “ShibInformer” on Twitter posted a “preview of the user interface of the SBHI burn mechanism in Shibarium.” It shows the amount of BONE ready to be burned and the option to “Initiate burn”.
While there is no exact date for the Shibarium release, it is widely expected that Shibarum will launch sometime in 2023.
The obstacles that could prevent Shiba Inu from reaching $1
While it is impossible to predict the future price of any cryptocurrency with certainty, reaching $1 represents an impossible milestone for SHIB. It is crucial to consider the circulating supply of SHIB tokens, which is in the trillions. The table below demonstrates Shiba Inu’s implied market cap at different hypothetical price levels.
|SHIB Price||Shiba Inu market cap|
|0.00000741 (current price)||$4.37 billion|
Meanwhile, here are the market capitalizations of prominent assets and companies:
|Apple (the world’s most valuable company)||$2.98 trillion|
|US Dollar (M2 money supply)||$23.37 trillion|
|US Stocks||$40.51 trillion|
As we can see from the table above, Shiba Inu reaching $1 at the current circulating supply is completely out of the question.
Furthermore, the price of SHIB would need to overcome numerous resistance levels as it progresses toward $1, facing potential sell-off pressures and profit-taking along the way. Such milestones are influenced by various factors, including those mentioned earlier, and sentiment can change rapidly within the cryptocurrency market.
Shiba Inu price prediction 2023-2024: $1 is out of the question, as is 1 cent
According to our Shiba Inu price prediction algorithm, the price of SHIB is expected to increase by double digits by the end of September. After that, SHIB could proceed to mount a substantial rally toward the end of the year and reach $0.00004388, which would represent an increase of +499% by the end of the year.
In the first part of 2024, our algorithm predicts a small retracement in the value of Shiba Inu, with the price of SHIB retracing a bit to $0.00004203, showing a +474% increase compared to current market rates. Keep in mind that predicting the future price trajectory of cryptocurrencies is especially difficult due to their inherent price volatility.
In any case, Shiba Inu isn’t predicted to reach $1 or even “just” 1 cent, for that matter. In fact, Shiba Inu would have to increase from its forecasted price point of $0.00004388 in December 2023 by a whopping +23,693% in order to claim the 1 cent milestone.
So, can Shiba Inu reach $1?
If nothing dramatically changes with the Shiba Inu tokenomics, there is no chance that SHIB will ever reach $1, or even lower price milestones like 1 cent. However, if the proposed Shibarium changes come into effect soon, and burn a substantial amount of SHIB, we could see the Shiba Inu coin massively increase in value. This potential for price growth is one of the reasons why Shiba Inu is featured on our list of the best cryptos to buy right now.
With its impressive bull run in 2021, Shiba Inu is has demonstrated that there is a considerable market for meme coins, spurring other cryptocurrency projects to follow in its footsteps and leading many investors to wonder which meme coin might be the next Shiba Inu.
If you prefer to do your own research and identify which cryptocurrency projects have a lot of potential before they are picked up by the broader crypto community, check the video below, which discusses what techniques to use to find potentially lucrative meme coin investment opportunities.