Amid the speculations of a possible explosive rally for Shiba Inu, a prominent tech platform highlights the only thing that could help SHIB achieve the $0.01 or $0.001 dream.
Shiba Inu (SHIB) continues to face opposition to an explosive rally despite occasional price surges. Amid speculations of a potential price pump, prominent tech platform CrowdWisdom believes massive burns could trigger a SHIB rally to $0.001 or even 0.01.
Due to its historical price performance, investors have positioned Shiba Inu to register impressive price gains in the next bull run.
Some analysts foresee a reclamation of the previous all-time high of $0.00008845, while others predict rallies to ambitious prices such as $0.001. SHIB must surge by 11,692% from its current price to hit $0.001.
While these forecasts have met criticisms and doubts, CrowdWisdom evaluated their feasibility in a report today. The report highlighted ambitious predictions of $0.01 for Shiba Inu. In the analysis, the platform concluded that a $0.01 price is impossible, considering current market dynamics. A price to $0.001 would also face similar hinderances.
However, CrowdWisdom called attention to a possible catalyst that could turn the tides for the canine-themed asset. According to them, only massive burns can catalyze such a rally for Shiba Inu.
The Shiba Inu Supply Problem
With an extensive circulating supply of 579 trillion tokens, Shiba Inu has a supply problem. The large supply hinders more price surges, as the market does not have enough money to support these explosive rallies. This trend has stunted SHIB’s growth.
The Shiba Inu community has championed the burn campaign to combat this issue. While the campaign aims to reduce the asset’s supply, it has not been as efficient as desired. Projects like Shibarium are expected to help bolster the burn rate.
CrowdWisdom pointed out that for SHIB to hit $0.01, its supply must decrease by as much as 90%. “At 90% Burn, to reach $0.01, Shiba Inu will have to rise nearly 90 times. If Shib Price were to rise by 25% every year, it would take it 11 years to reach $0.01,” the report says.
Besides burns, the report noted that ecosystem developments, external macro factors, community growth, ecosystem partnerships, and whale accumulation could also contribute to Shiba Inu’s journey to $0.001 and $0.01.
Interestingly, if properly executed, these factors could also bolster the burn rate. Notably, ecosystem developments such as Shibarium would help incinerate SHIB tokens. In addition, when external projects build on Shibarium, they contribute to burns.
Bearing these factors in mind, can Shiba Inu hit $0.001? Highly unlikely, but it remains difficult to predict the crypto market with complete certainty. Shiba Inu is trading for $0.00000848 as of press time.