The potential for Shiba Inu to reach the coveted price thresholds of $0.01 or $0.001 may be hindered by its vast circulating supply, which currently exceeds 589 trillion tokens.
Within the cryptocurrency market, there are numerous opportunities for investors to turn small investments into substantial wealth. Shiba Inu has been one asset that has demonstrated this potential in the past, generating $1 million from a mere $12 investment in 2021.
Analysts have set ambitious targets of $0.001 and $0.01 for SHIB, with the coin reaching an all-time high of $0.00008845 in October 2021. Despite a subsequent correction, there is optimism for a resurgence in the market, with investors and analysts anticipating a repeat of the bullish trend seen in 2021.
Recent price movements have seen Shiba Inu spike by 370% to $0.000045 before experiencing a retracement. As the coin struggles to maintain key support levels, there is a focus on preserving early gains while anticipating a potential price surge. Analysts continue to highlight the $0.001 and $0.01 targets as key levels to watch.
Notable Bitcoin investor and analyst Armando Pantoja has projected that Shiba Inu could reach $0.001 within the next year. In contrast, community figure Lola has argued that SHIB has the potential to surpass the $0.01 mark.
Despite these optimistic projections, the high circulating supply of Shiba Inu presents a significant obstacle to achieving these price targets. Reaching $0.001 would require a market cap increase from $13 billion to $589 billion, surpassing Ethereum’s current market cap of $426 billion. Additionally, reaching $0.01 would push Shiba Inu’s market valuation above $5.89 trillion, making it larger than Bitcoin and tech giants like Apple and Microsoft.
The challenge of reducing the circulating supply to facilitate significant price increases is further complicated by the current burn rate, which may take years to make a noticeable impact. The community is looking towards the Shibarium layer-2 network as a potential solution, with plans to automate the burn mechanism for SHIB with a portion of its base gas fees.
It is important to note that this content is for informational purposes only and should not be considered financial advice. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic does not accept responsibility for any financial losses incurred.