TLDR
- Shiba Inu’s massive supply of 589 trillion tokens makes it challenging to reach the $0.0001 price target.
- Despite burning over 410 trillion tokens, Shiba Inu’s current supply remains too high to drive significant price increases.
- The Shiba Inu team introduced Shibarium to accelerate burns, but its adoption has been minimal, limiting progress.
- To reach $0.0001, Shiba Inu would need an 880% increase in market cap without a reduction in its supply.
- Limited demand and slowed momentum in the broader crypto market hinder Shiba Inu’s ability to achieve its price goal.
Shiba Inu (SHIB) enthusiasts have set $0.0001 as the next major price target. However, the token’s massive supply makes this target difficult to reach. The road to this goal involves challenges that many experts believe are insurmountable.
Shiba Inu’s Massive Supply Limits Potential
Shiba Inu launched in 2020 with a total supply of 1 quadrillion tokens. Despite efforts by the community and Ethereum co-founder Vitalik Buterin, over 410 trillion tokens have been burned. Yet, the current circulating supply of Shiba Inu stands at a staggering 589 trillion tokens.
The token’s high supply severely limits its price potential. To reach $0.0001, Shiba Inu would need a substantial increase in market cap or a drastic reduction in supply. As of now, the market cap is $6.01 billion, and the price is at $0.00001020.
For Shiba Inu to hit the $0.0001 mark, its market cap must grow by 880%. This would translate to a market cap of $58.92 billion, assuming no reduction in supply. Given the enormous token supply, such a surge seems unlikely without a significant change in supply dynamics.
SHIB Burns Have Been Slow
Shiba Inu has made efforts to reduce its supply through token burns. However, these burns have not been as effective as some had hoped. While more than 410 trillion tokens have been burned, the rate of burning has significantly slowed since 2021.
The community and Shiba Inu’s developers are still actively pursuing burns, but they have not been able to make a significant dent in the supply. Currently, daily burns are minimal. The burning process would need to accelerate to help drive the price up.
One key initiative was the introduction of Shiba Inu’s Layer-2 blockchain, Shibarium. Shibarium was designed to help drive token burns by using a portion of its transaction fees. However, Shibarium’s adoption has been limited, with daily transactions dropping from over 4 million earlier this year to fewer than 20,000.
Demand and Supply Imbalance
The price of Shiba Inu is susceptible to both supply and demand. A token with such a massive supply requires strong demand to see any significant price movement. Despite Shiba Inu’s efforts to generate demand through various projects, such as ShibaSwap, the momentum in the broader cryptocurrency market has slowed.
The broader crypto ecosystem’s sluggishness has also affected Shiba Inu’s performance. Interest in Shiba Inu’s ecosystem projects, including ShibaSwap and Shibarium, has dwindled. Without a marked increase in demand, it seems unlikely that Shiba Inu will reach $0.0001 anytime soon.
Shiba Inu’s vast supply remains the biggest obstacle to its price growth. For the token to approach $0.0001, either the supply must be drastically reduced or demand must surge significantly. However, as things stand, $0.0001 remains an unrealistic target for Shiba Inu’s future.
