thecryptobasic.com
Amid growing predictions that Shiba Inu could reach $0.0001, findings reveal that the token’s enormous supply makes that target a dead-end projection.
Since Shiba Inu reached its all-time high of $0.00008845 in October 2021, several community analysts have identified $0.0001 as the next major target. In a TradingView analysis, market watcher Bunchhieng predicted that SHIB could mirror its 2020–2021 remarkable performance this season and hit $0.0001.
Following SHIB’s impressive rally in March 2024, which saw its price surge to $0.000045, analyst Eunice Wong also projected that the token would reach $0.0001 during the second phase of the ongoing bull cycle. Similarly, community expert Oscar Ramos expressed confidence in the milestone, asserting that SHIB hitting $0.0001 is “100% happening.”
Based on Shiba Inu’s massive supply, the price of each token is significantly low compared to tokens that have fewer units in existence. With a market cap of $6.01 billion, Shiba Inu is currently trading at $0.00001020.
For SHIB to hit the $0.0001 target, its price must rally 880.39% from the current level. Assuming the supply remains stable at 589 trillion tokens, this $0.0001 target would translate to a market cap of $58.92 billion. This represents an 880% surge in market cap, just to hit $0.0001 without supply reduction.
Limited Supply Reduction Efforts
Since Ethereum’s co-founder burned 410 trillion tokens in 2021, the broader community has not been able to incinerate at least 1 trillion SHIB. As a result, hundreds of trillions of tokens are still in circulation. While burns are happening daily, they are yet to reach a scale that could drastically reduce the massive supply and potentially drive SHIB’s price higher.
Layer-2 blockchain Shibarium, designed to support burns by burning a portion of its transaction fees, has seen minimal adoption lately. The network’s daily transaction volume has plunged massively from over 4 million recorded earlier this year to less than 20,000.
Utility and Demand Not Matching Huge Supply
A massive supply like Shiba Inu’s requires a corresponding strong demand to propel major rallies. The team recognizes this and has introduced several initiatives, such as Shibarium and ShibaSwap, to help drive that demand. However, momentum across the broader crypto market has slowed, and interest in Shiba Inu’s ecosystem projects and tokens has also declined.
Meanwhile, although Shiba Inu’s hefty supply makes $0.0001 a dead-end road, the token’s price can still increase modestly if demand spikes without any supply reduction. However, it is highly unlikely that burns could be exponential in scale, as it would require investors to incinerate some of their holdings.