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HomeCrypto NewsMarketMain Factors That Could Take Shiba Inu to 1 Cent

Main Factors That Could Take Shiba Inu to 1 Cent

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Global mass adoption and an impressive burn rate increase are two main factors that could take Shiba Inu to $0.01.

Shiba Inu’s (SHIB) growth has been extraordinary, and its remarkable price performance can be attributed to the hard work of its dynamic and strong community and its utility. Despite the significant growth of the asset, many proponents have dismissed a price target of $0.01 as wishful thinking.

However, SHIB BPP, a prominent community influencer, believes that Shiba Inu has the potential to achieve this target if three specific conditions can be met.

 

Mass Adoption 

High demand is the primary driver of an asset’s value, including cryptocurrencies like Shiba Inu. However, the adoption rate is a key factor in creating demand. Mass adoption could introduce more demand into SHIB, supporting its price performance.

Despite its modest beginnings, SHIB has garnered global attention to an extent. The CoinMarketCap report for Q1 2023 revealed that Shiba Inu is among the most viewed assets across all continents, signaling the increasing interest the asset is garnering in the global scene.

This feat indicates that the community’s efforts at bringing awareness to the asset are not futile and could lead to more adoption if sustained. The hype surrounding Shibarium, the Shiba Inu L2 network, also contributed to the increasing interest in Q1. As reported by The Crypto Basic, Shibarium Beta has surpassed 2.2M transactions with 71 tokens already deployed on tetwork.

Staking/Liquidity

Staking and liquidity can also contribute to the value of an asset. Staking is a process where users dedicate their holdings to help secure the network and receive rewards. The users still own the assets and can be unstaked at will. A critical benefit of staking is that it helps reduce the asset’s circulating supply.

Shiba Inu staking can assist in taking some SHIB tokens out of circulation, providing support for its price. According to Shibburn, 15.4 trillion SHIB are currently staked at the reporting time, resulting in a circulating supply of 573.9 trillion SHIB. The staked amount of SHIB represents only 2.61% of the Total Shib supply.

In addition, increased liquidity ensures that the SHIB can be easily bought or sold on an exchange, making it more accessible to investors and increasing its demand and value.

Burning 

Like staking, burning helps reduce an asset’s circulating supply, but more effectively, as burned tokens cannot be sent back into circulation. With a vast Shiba Inu supply, burning is a must for SHIB to take it beyond 1 cent.

The community, however, is making impressive contributions in burning, with KoyoToken, a recently-launched project, already making a notable impact.

The cumulative amount of SHIB burned currently stands at 410.6 trillion tokens, marking 41% of the asset’s initial supply of 1 quadrillion tokens. The burn campaign remains on track, with over 1 billion SHIB burned in the past seven days. Moreover, Shibarium is expected to help bolster burns by incinerating SHIB with 70% of its base fee.

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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.

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Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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