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Can Shiba Inu Reach $0.1 by 2024? Time for a Reality Check

source-logo  thecryptobasic.com 21 September 2023 14:49, UTC

With many SHIB enthusiasts foreseeing a market comeback, reality shows that a jump to $0.1 per SHIB is less feasible than it may appear at first glance.

As one of the biggest winners of the last bull market, many investors are optimistic that SHIB will significantly recover once the tide turns on the current bearish market conditions. However, many are ultra-bullish on the memecoin’s prospects and speculate heavily on its potential to reach the $0.1 mark within the next year.

Individuals who favor a $0.1 SHIB value reason that the memecoin has gained a whopping 8,914,728.26% since its market debut in December 2020. Reflecting on Shiba Inu’s leap into the leagues of the top largest cryptocurrencies also leaves some hopeful that SHIB can reach $0.1 and dumbfound anyone underestimating the power of a global community rallying around SHIB.

Yet, a reality check reveals that a $0.1 SHIB price is theoretically impossible. The memecoin project would have to significantly alter its supply dynamics and core market appeal to stand any chance of reaching such a high price.

Breaking Down the Odds of Shiba Inu Reaching $0.1 by 2024

At the time of writing, SHIB trades around $0.00000728 while maintaining a market capitalization of $4.92 billion. The current figures are a far cry from the token’s $0.00008845 all-time high price and $43.5 billion market valuation reached in October 2021.

However, the odds of SHIB hitting $0.1 in 2024 or the foreseeable future are almost zero. The reason is not far-fetched. A $0.1 price would put Shiba Inu’s market capitalization at $58.9 trillion, given the coin’s total supply of 589.59 trillion tokens. It is worth recalling at this stage that the global crypto market capitalization is a mere $1 trillion and only reached as high as $3 trillion at the peak of the 2021 bull run.

Additional context comes from considering the nominal global Gross domestic product (GDP). The global GDP metric measures the value added by goods and services created by all the world’s countries. The world’s nominal GDP is valued at $100 trillion, with the United States accounting for roughly $25 trillion.

Hence, a $0.1 SHIB price would entail that the memecoin will achieve a market capitalization twice as high as the United States GDP and more than half of the global GDP statistics. Such an outcome is simply unrealistic.

Can SHIB ever reach $0.1?

It is theoretically impossible for SHIB to reach $0.1 based on its current token supply. However, such a price is attainable if the project significantly alters the token supply. For instance, if the SHIB supply lowered to 1 trillion tokens, a $0.1 price would only put its market capitalization at $100 billion, making SHIB the third-largest cryptocurrency based on current market valuations.

Worth pointing out, though, is that such a change to the token’s supply could spark huge debates across the SHIB community and potentially cause the memecoin to lose its market appeal. A bloated token supply is usually a core feature of most memecoins, with individuals enticed by the prospect of holding millions or even billions of tokens, which are worth less in dollar terms compared to more established crypto assets like Bitcoin.