The cryptocurrency market has begun to thaw after a deep freeze throughout 2022. The combined value of all cryptocurrencies in existence has risen 27.5% in 2023 so far, which is a better return than all of the U.S. stock market indexes.
But meme token Shiba Inu(SHIB 9.21%) has climbed more than double that, with a year-to-date gain of 57%. That pales in comparison to its history-making 2021 return of 43,800,000%, which made millionaires out of investors for just a few dollars if they timed the run perfectly.
With renewed optimism creeping into the crypto sector this year, Shiba Inu enthusiasts might be wondering if history is set to repeat itself. Could it stage another record-breaking run? Is a price of $1 within the realm of possibility?
Shiba Inu developers are preparing for a new growth phase
The Shiba Inu ecosystem is plagued with challenges, with a sheer lack of adoption among the most significant, making the token a mere vehicle for speculation. A cryptocurrency that fluctuates so significantly in value simply isn't attractive to businesses because it makes managing cash flow impossible. And from an individual investor's perspective, nobody wants to hold a currency that could collapse in value at any time.
The proof is in the pudding: Just 723 merchants around the globe accept Shiba Inu as payment for goods and services.
The community is banding together to solve that issue. Enthusiasts are eagerly awaiting the release of Shibarium, a layer-2 blockchain solution that will shrink transaction costs and make the process more efficient. Logic suggests this upgrade will make Shiba Inu more attractive as a currency, but it doesn't necessarily solve its susceptibility to price swings, so only time will tell.
Developers are also stringing together new uses for it, including an upcoming virtual world (metaverse). Users will be able to buy plots of virtual land using Ethereumtokens, and then rename those plots by paying a fee in Shiba Inu.
But could those catalysts send Shiba Inu soaring?
Here's why 589.6 trillion is the key number
That's the number of Shiba Inu tokens in supply right now. The problem is in the math, and it's quite simple: At the current price of $0.000012 per token, multiplied by 589.6 trillion tokens in supply, Shiba Inu has a total value of $7.5 billion today.
Therefore, if Shiba Inu rose to $1 per token, its total value would be $589.6 trillion. That's completely unlikely to ever happen, primarily because it's technically impossible. Here's a list that will put the valuation in perspective.
Value
Description
$2.4 trillion
The current market capitalization of Apple (NASDAQ: AAPL), the largest U.S. company
$23.3 trillion
U.S. gross domestic product in 2021
$463 trillion
The worth of every person, business, and government in the world in 2021
Data source: Data Commons, Credit Suisse.
I can comfortably say Shiba Inu will never be worth 245 times what Apple is worth, nor will it ever eclipse the wealth of every person and entity on the planet.
But there might be one path to $1 for Shiba Inu
What if supply were to shrink? That's exactly what the Shiba Inu community is trying to achieve now through a process called burning. It can be done in several ways, but sending Shiba Inu tokens to a dead wallet is the simplest.
The community has come together to create fun ways to participate, too. Enthusiasts can use the internet search engine Shiba Search, which uses some of its advertising revenue to buy Shiba Inu tokens and burn them. Similarly, Shiba Burn Tube is a channel on Alphabet's YouTube video platform that also earmarks advertising revenue for token-burning.
But how many tokens need to be burned to generate a price of $1? All else equal, shrinking the supply to 7.5 billion tokens would theoretically result in a price of $1, based on Shiba Inu's current value of $7.5 billion.
That's a 99.9998% reduction, so it would take the participation of almost every single holder in order to make it happen. But here's the rub: Even if everybody burned 99.9998% of their tokens and pushed the price to $1, they would simply have fewer tokens that are worth more money per token. The dollar value of their holdings would remain exactly the same, making the exercise futile.
There's only one true method to make Shiba Inu more valuable for investors, and that's by creating new uses that drive widespread adoption. Unfortunately, that's unlikely to happen if history is any guide. In any case, Shiba Inu will probably never see $1 per token.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Ethereum. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
to $1? The community will have to burn 99.99998% of all tokens to send Shiba Inu to $1 based on its current market cap. In other words, almost all the 589.3 trillion tokens must disappear from circulation, leaving just 6.3 billion remaining.
The possibility of reaching $1 seems impossible, given the current supply of more than 589 trillion tokens. Instead, a $0.01 cent price goal appears more realistic for Shiba Inu's future. However, even reaching $0.01 from the current price will require significant token burns as well as more utility for the SHIB token.
It is also almost twice the value of all real estate globally. As such, a price of $1 would mean that Shiba Inu alone would be worth more than any other asset class in the world, which is highly unlikely.
Key Points. Shiba Inu could have made you a millionaire for the price of a cup of coffee in 2021. The token has since declined 73% from its all-time high, though sentiment is improving in the cryptocurrency space. It might not be possible for Shiba Inu to rise enough from here to mint more millionaires.
To become a millionaire through Shiba Inu, one needs to own a substantial amount of the token. Based on current market prices, for instance, if Shiba Inu reaches a price of $0.00003, having 33 billion SHIB tokens would make someone a millionaire. At present prices, this amount of SHIB would cost approximately $515,000.
With all this in mind, our Shiba Inu price prediction is all-together positive, and we predict SHIB will reach a high of $0.000048, a possible low of $0.000010 and an average price of $0.000032.
Data from Telegaon suggests that SHIB might achieve its dream price target sometime around 2040. While this is more than a decade away, it looks like hitting the 10-cent mark will take longer. Telegaon expects SHIB will reach $0.10 only in the year 2050.
Shiba Inu's highest trading price in 2050 is expected to be about $0.0084. According to our calculations, Shiba Inu might reach an average price of $0.0077 by 2050. Shiba Inu may also face short downturns, with the minimum price level hanging around $0.0074.
Unfortunately, no leading price prediction firms have predicted a tentative timeline for Shiba Inu to reach the $0.01 milestone. The highest they have predicted is a price target of $0.0001 and that too after this decade in 2030.
Shiba Inu (CRYPTO: SHIB) burst onto the scene during crypto mania in 2020 and 2021. The digital asset skyrocketed in 2021 during a raging bull market, certainly making some early adopters wealthy beyond their wildest dreams.
Similarly, with an investment of $845, you could make $1 million if SHIB reaches $0.01. An investment of $845 at the current price of $0.0000845 would get you 100 million SHIB. Therefore, if you hold on to the 100M tokens and SHIB price surges to $0.01, your $845 investment today could turn into $1 million.
Conclusion. In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024. Investors keen on penny cryptos have a spectrum of options to explore.
Can Shiba Inu burn trillions of coins? In 2022, a Shiba Inu community member, who goes by the pseudonym 'Queenie,' projected that the Shibarium burn portal could incinerate a whopping 111 trillion SHIB tokens annually.
Shiba Inu's (SHIB) future is uncertain and depends on several factors. As with all digital assets, strong community support is its key advantage, but SHIB is subject to a highly volatile market.
To have a million dollars worth of SHIB at $0.007 per coin, you will need about 142,857,143 coins (142 million). The price of 142 million SHIB right now is around $2425.71. In this scenario, your portfolio's value will have grown by 41,125%.
Can Shiba Inu burn trillions of coins? In 2022, a Shiba Inu community member, who goes by the pseudonym 'Queenie,' projected that the Shibarium burn portal could incinerate a whopping 111 trillion SHIB tokens annually.
Many investors and traders eagerly anticipate when Shiba Inu reaches the 1 cent mark. However, this may not be possible considering the current circulating supply of 589 trillion tokens. And to reach a value of $1, the market cap of Shiba Inu would have to be $589 trillion, which is currently unattainable.
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