Shiba Inu can Reach $ 1?

There is no doubt that the Shiba Inu (CRYPTO:SHIB) had an amazing run in 2021.

The dog-themed cryptocurrency jumped from $0.000000000133 (nine zeros) at the end of 2020 to $0.000033 (four zeros) at the end of 2021, soaring around 26,000,000% as major crypto exchanges allowed trading in SHIB and meme coins remained popular after the previous surge. of Dogecoin (CRYPTO:DOGE).

After the meme coin removed five decimal zeros from its price, some are calling for the coin to finally hit $1. From its current price of $0.000021, that would mark a gain of approximately 4,700,000%. Considering how far the Shiba Inu has come, it may seem realistic for the coin to gain another 4,700,000%, but basic math stands in the way.

Shiba Inu are traded for such a small fraction of a penny because their supply is so great. There is currently a supply of 549 billion SHIB tokens in circulation, giving it a market capitalization of around $11 billion. If those tokens were worth $1 each, SHIB's market capitalization would be $549 trillion, roughly 200 times larger than Apple, the world's most valuable company, and more than six times the world's annual GDP.

In other words, for Shiba Inu to reach $1 will likely require a massive reordering of the world economy. That's not going to happen. However, there is a caveat.

The only way SHIB can get to $1

There are two ways to increase the value of Shiba Inu. One is that the dealers simply jack up the price. The other is that the supply decreases, which should make the remaining coins more valuable. For this to happen, the coins must be taken out of circulation or burned, as traders call it, by transferring them to dead wallets.

It is not unusual for this to happen. In fact, according to Shibburn, a website that tracks Shiba Inu coin burnings, 410 billion Shiba Inu coins have already been burned. Almost all of those coins were taken out of circulation by Vitalik Buterin, the co-founder of Ethereum (CRYPTO:ETH), who was gifted half of Shiba Inu's 1 quadrillion coin supply by the anonymous Shiba Inu founder. Buterin did so because he felt uncomfortable controlling much of the cryptocurrency supply.

According to Shibburn, at the time of writing, 62 million Shiba Inu coins had been burned in the last 24 hours. While that may sound like a lot, at that rate it would take a little over two weeks to burn through a billion coins and 40 years to burn through a billion. The burn could be accelerated if there was an organized movement among SHIB holders, which could gather steam if SHIB's value continues to fall. However, there is a clear disincentive to burn the coins. If the value starts to rise, holders are interested in holding their coins rather than burning them, and the decentralized nature of cryptocurrencies makes it unlikely that there will be an organized movement powerful enough to substantially reduce the number of coins.

What's next for Shiba Inu?

Since its peak of $0.88 at the end of October, the Shiba Inu has lost more than 75% of its value, with other cryptocurrencies dropping considerably as well. Bitcoin (CRYPTO:BTC) is down nearly 50% from its all-time high, as is Ethereum. Cryptocurrencies have tumbled amid broader stock market jitters over rising interest rates.

It is impossible to predict where the cryptocurrency market will go next, but the most inflated assets during the pandemic have already fallen considerably.

At this point, another Shiba Inu rally seems unlikely, and getting to $1 is almost impossible.