Shiba Inu’s $0.01 Target: The Daunting Path Ahead
Can a meme coin really rewrite the rules of finance? Shiba Inu’s army of holders cling to the dream of a 1-cent valuation—but the math reveals a brutal uphill battle.
Market cap realities: Hitting $0.01 would require SHIB’s valuation to balloon beyond most national GDPs. Even with aggressive token burns, the supply-demand equation looks borderline fantastical.
Adoption or speculation? The coin needs more than viral tweets to sustain such growth—think institutional adoption, DeFi utility, and exchanges treating it as more than a liquidity afterthought.
Meanwhile, Bitcoin maximalists chuckle into their cold wallets. Because nothing says ’healthy market’ like dog-themed tokens outpacing Fortune 500 companies.
How Can Shiba Inu Fulfil The 1 Cent Dream?
One of the most significant barriers to SHIB’s price is its massive circulating supply. There are about 589 trillion SHIB tokens in circulation. If the asset hits the $0.01 price level with its current supply, the project’s market cap will rise to $5.89 trillion. This figure is highly unrealistic as it is larger than major tech companies such as Apple, Microsoft, Nvidia, etc.
The only realistic way for SHIB to hit the 1 cent price point is for the project to somehow reduce its circulating supply. One of the biggest catalysts for SHIB’s incredible 2021 rally was Vitalik Buterin’s massive token burn. The ethereum co-founder received half of SHIB’s supply upon launch. Buterin decided to burn 90% of the tokens he received. His actions led to a massive supply dip while demand was still high. Low supply and high demand cause a substantial price rally. Since its launch in August 2020 till it hit an all-time high in October 2021, SHIB’s price went up by many million percent.
The shiba inu (SHIB) team is reportedly working on a new burn mechanism. According to reports, the new mechanism could potentially burn trillions of tokens yearly. Such a burn mechanism could push SHIB towards the one-cent dream fairly quickly. The team has yet to announce an official launch date for the burn mechanism. The team has also not clarified how it intends to burn more tokens.
