We all know that the meme cryptocurrency Shiba Inu enjoys great popularity, on the one hand, it is one of those memecoin that many investors do not take seriously, but it is also one of the best known in the market due to the media coverage around it, and that 2021 was a great year for this coin, generating incredible profits for many of its investors, thus arousing the interest of many people who also bet on SHIB expecting to get huge profits, making circulate in many media the question will the price of SHIB reach $1?
Image elaborated in powerpoint, the SHIB logo is taken from wikipedia.
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Shiba Inu was created in August 2020, and although at that time it recorded its historical low of $000000000051, it quickly gained popularity, mainly driven by tweets from personalities such as Elon Musk and Vitalik Buterin, causing it to reach its current ATH of $0.00008 in just over a year, representing gains of 43,000,000% in 2021. At the time of making this publication Shiba Inu is trading at $0.00001161 according to Coinmarketcap data, being affected by the current bear market with an 85% loss in value relative to its ATH.
Screenshot taken from Coinmarketcap.
Because of the explosive growth of the coin last year, many are wondering if it could ever be worth $1. But with no real use case, it is only a coin used as a means of speculation, which makes it difficult for it to increase in value, but what really makes it unlikely to reach the dream price of $1 is its enormous supply.
Right now there are 589.7 trillion Shiba Inu tokens in circulation in the market, so it is unlikely that the price will skyrocket from 0.00001 to $1, or at least that will take a long time, really a long time.
Screenshot taken from Coinmarketcap.
Let's do some calculations, with a supply of 589.7 trillion tokens, if they managed to reach the value of $1, we are literally talking about a market capitalization of $589.7 trillion. This would make this coin the most valuable asset on the planet, surpassing the market capitalization of companies like Apple and Microsoft.
Screenshot taken from Companiesmarketcap.com
The fact is that, with a price of $0.000011, the current market capitalization of Shiba Inu is $6.3 billion, and starting from this value and a projected price of $1, then the supply of SHIB should be 6.3 billion tokens, which represents taking 99.99% of the coins in circulation out of the market.
And apparently this logic makes sense to many holders as SHIB token burning is currently underway to reduce the current number of tokens in circulation, and at the time of this publication approximately 27 million tokens had been burned in the last 24 hours, according to data reported by shibburn.com.
Screenshot taken from shibburn.com.
If we assume that this figure remains constant over time, we could expect a burn rate of 9800 million tokens annually, but with the large number of tokens in circulation, we would have to wait more than 60000 years for SHIB to reach the value of $1.
And while certainly the rate of token burning is not constant and may increase over time, it still seems like a very bleak forecast. Not to mention that this action requires the participation of all investors, and it is quite possible that many of them may not want to give up a part of their assets for the sake of the whole community.
Thanks for coming by to read friends, I hope you liked the information. See you next time.
With the current circulation of the Shib token, it is very unlikely that it will reach $1. Even if a massive burn is initiated, it will still take time for the price to be possible. My opinion though.
Thanks for sharing this excellent piece buddy
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The huge amount of tokens in circulation is its big problem, certainly even with a massive burning it would take a long time to reach that value.
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Hello dear @emiliomoron, it is a great analysis that you make and it certainly looks impossible for the shiba to reach a dollar, because it is a meme, I do not know the comparison it may have with the dogecoin, but said token reached unexpected prices.
Thank you for sharing your opinion is very valuable for us, have a great week.
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Certainly these meme coins have aroused great interest and raised unexpected values, time will tell if they continue to grow in popularity. Thanks for reading my friend!
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Your post was upvoted and resteemed on @crypto.defrag
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In crypto currency anything is possible
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This is also true
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Hello @emiliomoron
It is.an excellent analysis,very well justified. But as you also say, it is a currency whose price depends on speculation rather than on.an added value, although as I understand there are some projects like even a metaverse moving forward, but it is something that is not yet concrete.
I don't think that token will reach 1$. It is unlikely to happen, but it can go up and exceed its ATH.
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Hi friend @josevas217, that's the other problem with the token, it still doesn't have a use case, if projects like metaverse get implemented maybe they will help to value the token, probably getting to exceed its ATH but it's unlikely to ever be worth $1.
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Shiba is not friendly for now so, it become me third fav account
i like TRON ,BNB and then Shib
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It is a currency with a lot of popularity, but it is not attractive for many others, I think it depends on each investor.
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That it comes to cost $1 in the short term is quite unlikely, however when the market capitalization of the entire crypto market reaches historic highs maybe one day we will see shiba inu costing quite a high price, I don't know if $1, but at least with two zeros less than it has now.
When the bitcoin cost just a few dollars if you had told someone that this cryptocurrency was going to cost 60 thousand dollars surely no one would believe you, and we all know what has been the story, and is that anything can happen in this world of cryptocurrencies.
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