- Shiba Inu needs 880.39% rally to reach $0.0001 target with current token supply intact.
- Market cap would need to climb to $58.92 billion from current $6.01 billion level.
- Shibarium daily transactions drop from 4 million to under 20,000 transactions recently.
Community predictions about Shiba Inu reaching $0.0001 continue to circulate, but the token’s supply dynamics make this target mathematically challenging. Several analysts have identified this price level as the next milestone since SHIB hit its all-time high of $0.00008845 in October 2021.
Market watcher Bunchhieng predicted in a TradingView analysis that SHIB could replicate its 2020-2021 performance this cycle and achieve $0.0001. Analyst Eunice Wong also projected the token would reach this level during the second phase of the current bull market following SHIB’s rally to $0.000045 in March 2024.
Community expert Oscar Ramos expressed confidence in the milestone, stating that SHIB hitting $0.0001 is “100% happening.”
Market cap implications create barriers
Shiba Inu currently trades at $0.00001020 with a market capitalization of $6.01 billion. The token’s low price per unit stems directly from its massive supply compared to assets with fewer tokens in circulation.
For SHIB to achieve the $0.0001 target, the price must rally 880.39% from current levels. Assuming the supply remains stable at 589 trillion tokens, this target would require a market cap of $58.92 billion. This represents an 880% increase in market cap just to reach $0.0001 without any supply reduction.
Since Ethereum co-founder Vitalik Buterin burned 410 trillion tokens in 2021, the community has not been able to remove at least 1 trillion SHIB from circulation. Hundreds of trillions of tokens remain in the supply. While daily burns continue, they have not reached a scale that could drastically reduce the supply and drive price appreciation.
Ecosystem adoption falls short of targets
Layer-2 blockchain Shibarium was designed to support burns by incinerating a portion of transaction fees. The network has experienced minimal adoption in recent periods. Daily transaction volume has plunged from over 4 million recorded earlier this year to less than 20,000 currently.
A supply as large as Shiba Inu’s requires correspondingly strong demand to fuel major price movements. The development team has introduced initiatives including Shibarium and ShibaSwap to generate that demand. However, activity across the crypto market has slowed, and interest in Shiba Inu ecosystem projects and tokens has declined.
The token’s price can still increase modestly if demand spikes without supply reduction. However, achieving burns at an exponential scale remains highly unlikely, as it would require investors to voluntarily destroy portions of their holdings.
Source: https://thenewscrypto.com/why-shiba-inus-massive-supply-makes-0-0001-an-impossible-target/
