Key Takeaways:
- Shiba Inu (SHIB) dropped 80% since Oct. 2021.
- Can the token reach $1?
- Even an effective burning mechanism might not be enough.
YEREVAN (CoinChapter.com) – Shiba Inu (SHIB) made a colossal 46,000,000% profit for its 2021 investors but lost over 80% of its valuation since peaking in Oct. 2021. As a result, the meme coin traded at $0.000016 on Aug 16. So, will Shiba Inu coin reach $1?
SHIB daily chart
The meme coin jumped over 40% on Aug 14, giving the ‘SHIB army’ hope for a bullish continuation. However, the rally halted shortly, and the asset price corrected down. The trading volumes on the chart below also hint at a looming selloff and show insufficient weight behind the green candle on Aug 16.
Nearly a year past the $0.000088 peak, the SHIB army still hopes to pump the meme coin to $1 despite the bear market. However, the explosive rally doesn’t appear possible. Here’s why.
Will Shiba Inu coin reach $1?
As mentioned, SHIB pulled off a massive 46,000,000% rally in 2021, surprising many and defying common sense. However, it still has to undergo a further 6,000,000% rally to reach $1.
True, the latter is several times smaller than Shiba Inu’s accomplishment so far. But the digital asset’s market valuation has reached $8.8 billion, making such explosive rallies difficult.
Furthermore, the token has a maximum total supply of one quadrillion tokens. The current total supply after the burn is 589,6 trillion SHIB, with a circulating supply of 558.2 trillion tokens. Thus, if Shiba Inu reaches $1 per coin, its market cap would stand at $589,6 trillion, which is roughly 530 times higher than the total crypto market cap of $1.11 trillion on Aug 16.
Thus, it is not plausible at the moment that Shiba Inu could ever reach a $1 valuation, even while employing an active burning mechanism.
What about burning?
In detail, burning has already proved effective in boosting the SHIB price. However, for SHIB to reach $1 through this token elimination process would have to remove a substantial percentage of the total supply. Thus, whales and retail investors would have to destroy their holdings for relatively small staking rewards for others to reap the results, which doesn’t seem logical.
Also read: 3 reasons why Bitcoin market awaits another punishing selloff in HY2022.
Shiba Inu has defied logic before and earned a #12 rank in cryptos by market cap. However, can Shiba Inu coin reach $1 any time soon? SHIB army continues to chant ‘YES,’ while common sense disagrees.
