This article highlights the factors that can put Shiba Inu on the path of hitting $0.01.
The enormous supply of Shiba Inu makes it difficult for enthusiasts to see the cryptocurrency hit $0.01 anytime soon. However, these doubts do not rule out the possibility of Shiba Inu achieving the milestone in its lifetime.
Since Shiba Inu rallied millions of percent to an all-time high (ATH) of $0.000086, the cryptocurrency has struggled to ignite the same spark recently due to political and economic events. According to data from Coingecko, SHIB is trading around $0.00001090, down 87.35% from its peak value. Before we delve further, let’s look at a brief history of Shiba Inu.
History of Shiba Inu
Launched in August 2020 by pseudonymous developer Ryoshi, SHIB is an Ethereum-based (ERC-20) token that features the popular Shiba Inu dog breed. The crypto asset started as a meme coin and an alternative to Dogecoin, earning it the title “DOGE Killer.”
Interestingly, Shiba Inu has continued to launch significant updates to earn its place among the list of crypto assets with utilities.
Can Shiba Inu Reach $0.01?
With the current performance of Shiba Inu, many could consider it an unreasonable fantasy for the price to hit the $0.01 mark. However, the meteoric rise of Shiba Inu has made it clear that anything is possible in the cryptocurrency space. Shiba Inu, which plunged to an all-time low (ATL) of $0.000000000056366 on November 28, 2020, rallied to a high of $0.000086 in less than one year.
Boosting Shiba Inu’s Market Cap
Having Shiba Inu reach $0.01 would require the cryptocurrency to have an astronomical market capitalization in trillions of dollars. When writing this line, Shiba Inu has a market cap of $6.4 billion. With its current circulating supply of nearly 589.36 trillion, a price of $0.01 would require a market cap of more than $5.89 trillion. This is more than the market valuation of Bitcoin (BTC), which currently stands at $539 billion.
Aside from growing Shiba Inu’s market cap to a whopping $5.89 trillion, there are other ways the cryptocurrency can rally to one cent.
How Can Shiba Inu Price Reach $0.01?
In this section, TheCryptoBasic highlights how Shiba Inu can soar to $0.01.
Shiba Inu enjoyed its fair share of demands from investors in 2021, pushing its price to $0.000086. However, the demands it got declined rapidly. Investors’ appetite for the crypto asset plunged due to political and economic events, especially ongoing measures by the Feds cracking down on crypto following the collapse of FTX.
Meanwhile, Shiba Inu whales have not relented in their accumulation spree of Shiba Inu tokens. Last month, two major whales purchased 1 trillion tokens in two transactions.
While these transactions are commendable, hitting the $0.01 mark would require more trading activities. Shiba Inu needs new rounds of traders and investors, just like in 2021. The entrance of new investors would boost the token’s trading volumes across exchanges and contribute significantly to its price.
Global Mass Adoption
Another essential factor that could put Shiba Inu on the path of $0.01 is the widespread adoption of the token as a form of payment. Shiba Inu has had a good run in terms of adoption as a payment method. Companies, including BitPay, Binance, and CoinGate, have been championing initiatives to increase cryptocurrency’s use in payment.
These companies have added support for the crypto asset, enabling people to pay for goods and services using the asset class. Today, Shiba Inu can be used to buy goods from online merchants, pay salaries, purchase real estate properties, etc.
Although Shiba Inu has succeeded in its use as a payment method over the years, there still needs to be more adoption of the token in the payment industry. Having more top merchants accept Shiba Inu payments could drive its price toward $0.01.
Another way Shiba Inu can reach the $0.01 mark is when a massive chunk of the token’s supply is reduced via burns. The community is already playing a significant role in reducing the token’s supply. However, these efforts have not yielded much result.
For Shiba Inu to soar to $0.01 via burns at the current price of $0.00001090 and a market cap of $6.4 billion, around 588.2 trillion tokens must be incinerated.
Notably, Shiba Inu is among the top cryptocurrencies that started incinerating a part of its supply at an early stage. According to data from ShibBurn, a total of 410,630,138,380,883 (410.63 trillion) SHIB tokens have been burned from the total supply of 1 quadrillion.
Members of the community carry out these burns via different initiatives. Earlier this week, the community burned 1.07 billion in one week. Aside from the community, other third parties, like Steven Cooper’s Bigger Entertainment, ShibBurn, and small business enterprise Koyo Token, have also played a major role in SHIB’s incineration. Koyo surprised Shiba Inu’s community members by incinerating 6.1 billion SHIB in March alone. While these SHIB transitions are necessary, there is still a need for more burns to reduce the token’s supply further.
Shibarium is Shiba Inu’s layer-2 network. The blockchain has been tipped to roll out numerous features that could help drive SHIB’s price to one cent. The most important feature Shibarium is tipped to roll out is a dedicated burn portal that will incinerate SHIB through every transaction within the network.
The team did not give hints on how many SHIB will be burned via the portal. However, the number of tokens Shibarium can burn will depend on its adoption. As more crypto projects adopt the protocol, the more tokens the protocol will burn, and vice versa.
Meanwhile, if Shibarium can successfully match Polygon in terms of scalability, operability, and security, as promised, it won’t be difficult attracting decentralized application developers. Interestingly, the team has launched the test network of Shibarium, Puppynet, which has recorded huge growth in network activities within a short period.
The major way Shiba Inu can hit $0.01 is by destroying a huge chunk of its supply or pushing the asset’s mainstream adoption, especially in the payment sector, and luring new investors into buying the token.
SHIB can reach $0.01. However, the goal will require lots of work from everyone affiliated with the crypto project, including community members. Here’s What Can Take Shiba Inu To $0.01?
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.