Will Shiba Inu Coin Reach $1? Here Are The Facts

While SHIB has displayed an incredible increase in value since its launch, it is extremely unlikely that the Shiba Inu coin will reach $1. The quick explanation for this is that the Shiba Inu supply is too large for SHIB to reach a price of $1. 

At the time of writing this article, there’s about 589.3 trillion Shiba Inu tokens in circulation. A price of $1 per SHIB would imply a market capitalization of $589.3 trillion, which is simply not a realistic scenario. 

In this article, we’ll be taking a closer look at why Shiba Inu likely won’t ever reach $1. However, let’s get started with a quick overview of the Shiba Inu project.

What is Shiba Inu (SHIB)?

Shiba Inu is a project that has launched the SHIB token on the Ethereum blockchain. The project was heavily inspired by Dogecoin, which is another popular cryptocurrency that uses the Shiba Inu dog breed in its branding.

Shiba Inu initially launched in August 2020, but it flew under the radar for the first few months of its existence. After Dogecoin went on a strong rally in the first quarter of 2021, cryptocurrency speculators began looking for other similar cryptocurrencies that could replicate its success. 

The market settled on Shiba Inu as “the next Dogecoin”, and SHIB saw a tremendous price increase in April and May of 2021. Later on in the year, the Shiba Inu price exploded again and the coin reached its all-time high price in October of 2021.

The Shiba Inu price on January 1, 2021 was about $0.00000000007730. Its all-time high was $0.00008819. So, the token saw a 114,088,000% price increase in less than one year.

SHIB is an example of a “meme coin”. This term refers to crypto assets that utilize popular internet memes to build a large following. Usually, meme coin projects don’t put a priority on releasing products or giving utility to their coins. 

However, Shiba Inu is a standout in this regard as the team is creating an ecosystem of products that utilize the SHIB token. This includes the ShibaSwap decentralized crypto exchange, the Shibarium layer 2 scaling solution for Ethereum and the Shiboshis NFT collection. The project is also working on a metaverse platform called Shib: The Metaverse.

Here, it’s also worth mentioning that even though SHIB is by far the biggest token launched by the Shiba Inu project, their ecosystem also includes the BONE and LEASH tokens. 

Will SHIB reach 1 dollar? Here’s why the answer is most likely no 

As we’ve explained earlier, Shiba Inu would have a market capitalization of about $589.3 trillion if SHIB had a price of $1. 

To put this number in context, we should point out that Apple, the world’s most valuable company, has a market capitalization of about $2.74 trillion at the moment. So, if Shiba Inu were to reach $1, it would be about 218x larger than Apple in terms of market capitalization.

While SHIB going to a dollar is next to impossible, it’s also unlikely that Shiba Inu will hit 1 cent. At such a price, the market cap of Shiba Inu would be $5.89 trillion, which would still be larger than the world’s two most valuable companies (Apple and Microsoft) combined. A $5.89 trillion market cap would also be larger than the all-time high market cap of the entire cryptocurrency market ($2.88 trillion).

Now, let’s take a look at what the Shiba Inu market cap would be if it reached certain psychologically significant price levels.

What could bring Shiba Inu to 1 dollar?

Theoretically, it’s not impossible for Shiba Inu to reach 1 dollar. However, this would likely have to involve a substantial portion of the SHIB supply being burned, or perhaps a redenomination of SHIB. 

However, a token burn of this magnitude is extremely unlikely, as it would involve permanently destroying the vast majority of the SHIB supply. In order for SHIB to reach $1, the SHIB supply would likely have to be reduced well below 1% of the current supply. 

The current market capitalization of Shiba Inu is about $5.14 billion, according to data from CoinCodex. So, the SHIB supply would have to be only 5.14 billion tokens for Shiba Inu to reach $1 given its current market cap. Decreasing the SHIB supply from the current supply of 589.3 trillion to 5.14 billion would require burning over 99.99% of the token supply.

This would be almost impossible to pull off logistically, as SHIB holders would have to opt in to have their tokens burned. Since investors would see the majority of their SHIB tokens disappear, a burn of such a magnitude would likely not grow the value of users’ SHIB portfolios despite the price of a single token increasing. 

The supply of SHIB is expected to decrease in the future thanks to a SHIB burn mechanism implemented in the Shibarium layer 2 platform. The platform will burn a certain amount of SHIB tokens for each transaction it processes. However, the SHIB burn rate originating from Shibarium use won’t be nearly enough to drive the SHIB price towards $1. 

Meanwhile, a redenomination could bring the price of 1 SHIB to $1, but wouldn’t actually change the value of investors’ SHIB holdings.

Shiba Inu Price Prediction: $1 SHIB price is out of reach despite bullish forecast 

The Shiba Inu price prediction from crypto market aggregator CoinCodex is forecasting a bullish future for SHIB. However, the Shiba Inu price won’t get close to $1 even if this optimistic scenario materializes. 

According to this forecast, Shiba Inu will see a substantial rally towards the end of 2023, with the price even surpassing its current all-time high. The prediction is forecasting a steep price correction at the start of 2024, with the token gaining momentum again in the second half of the year. 

Of course, it’s difficult to accurately predict the price movements of such a volatile asset, and forecasts can change significantly based on current market conditions. 

The bottom line – Shiba Inu could certainly grow in the future, but it won’t reach $1

If you’re looking to buy Shiba Inu with the goal of seeing its price increase to $1, you’ll almost certainly be disappointed. As we have shown in this article, the circulating supply of Shiba Inu is simply too large for a $1 SHIB price to be possible. In fact, you probably shouldn’t even count on SHIB to reach 1 cent. 

Still, this does not mean that Shiba Inu can’t grow in the future. It’s still easily the second largest meme coin in the cryptocurrency market, and the project’s team is working on products that could potentially attract a lot of users. Here, we should highlight the Shibarium platform, which will give Ethereum users an alternative blockchain platform with faster transactions and lower fees. 

FAQs

Due to the project’s popularity, we see a lot of questions related to the topic of Shiba Inu price predictions. Let’s address some of the most questions users have about Shiba Inu.