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Shiba Inu encounters a major challenge in its quest to eliminate additional leading zeros and achieve new milestones.
The Shiba Inu community has maintained its confidence in the meme coin’s potential to reach new heights. This confidence is largely due to Shiba Inu’s historical performance, which saw its value skyrocket by at least 8,333,233% in the 2020/2021 bull run, transforming $8 into $1,000,000.
During this period, Shiba Inu eliminated multiple leading zeros and walked its way up to the top 10 list of largest crypto assets. Despite the current battles to maintain a position as a top 10 asset, most investors believe that SHIB still has more potential for further upside.
Shiba Inu Price Targets
As a result, some market commentators have presented lofty targets for the second-largest meme coin, anticipating an explosive run. While analysts like Javon Marks expect SHIB to erase one leading zero and clinch new realistic highs around $0.00015, others have presented more audacious goals.
For instance, pundit Crypto Sheriff predicted last month that Shiba Inu could surge to $0.001. Meanwhile, Shiba Inu community figure Lola argued earlier this month that if the prospect of Bitcoin reaching $1 million is feasible, then it is also reasonable to assume SHIB can hit $0.01, essentially eliminating three leading zeros.
While these targets seem overly ambitious, others have also projected more substantial goals. In August, leading crypto exchange CoinW sought community opinions on whether Shiba Inu could rally to the $1 level before other assets attain their respective targets.
Roadblock to SHIB’s $0.01 and $1 Goals
However, despite the optimistic projections, a Shiba Inu rally to audacious goals such as $0.01 and $1 might not materialize in our lifetime. This is largely due to its supply constraint, which is the major factor contributing to the roadblock.
For context, Shiba Inu has a circulating supply of 584 trillion, according to data from burn tracking platform Shibburn. With this supply, if Shiba Inu claimed a $0.01 price, its market cap would have surged to a massive $5.84 trillion. Notably, this is larger than the entire crypto market, with a current valuation of $3.69 trillion.
Further, a $1 price for Shiba Inu would translate to a market cap of $584 trillion for the meme coin, considering its current supply. This figure is over 32 times larger than the valuation of Gold, the largest asset by market cap, which stands at $17.9 trillion.
Also, at this valuation, SHIB would exceed the combined market caps of the top 20 largest companies in the U.S. For context, the top 20 largest firms in the U.S. by market cap have a combined valuation of $26.04 trillion, still 22 times less than $584 trillion. There is not enough capital to sustain a SHIB market cap of $584 trillion.
Notably, this confirms that the $0.01 and $1 price marks are practically unfeasible for SHIB amid current market conditions. However, other bullish but less ambitious targets, such as $0.0001 and $0.0003, are readily feasible for the meme coin and would present substantial gains for investors.
The Only Solution for Shiba Inu is to Reach $0.01 or $1
The only way for Shiba Inu to reach $0.01 or $1 is through a reduction in supply. This can be achieved by burning SHIB tokens. Similar to Binance Coin (BNB), where tokens are burned at regular intervals, the SHIB team could reduce the circulating supply by buying back SHIB and burning it.