Can Shiba Inu reach $1?
shiba inusit is (CRYPTO: SHIB) This year’s performance is a far cry from last year’s. At the time, the popular meme token soared 45,000,000%.
So far this year it’s been down, but things could change for Shiba Inu. It has climbed about 12% over the past month.
This crypto reader also has some catalysts on the horizon. Shiba Inu is launching a metaverse project and a Layer 2 scaling solution. Could these and other efforts help it eventually reach $1? Let’s find out.
Shib Army Support
Shiba Inu first rose to fame through their loyal fan base, known as the Shib Army, and they invested in the meme token and promoted it on social media. This goes hand in hand with the general idea behind Shiba Inu when it was created. The token was meant to be “a decentralized spontaneous community building experiment,” according to its whitepaper.
But what exactly is the Shiba Inu? It is a token operating on the Ethereum blockchain. You can stake Shiba Inu and earn passive income or use it as payment. And now those uses are expanding. Shiba Inu opens its metaverse project, which includes the sale of virtual land.
Shiba Inu started by making about 36,000 lots available this spring, but the goal is to sell over 100,000 lots. This will provide buyers with access to a whole word of Shiba Inu activities. This metaverse project is one of the potential catalysts for Shiba Inu this year.
The second catalyst is Shibarium. It is the Layer 2 scaling solution that will allow Shiba Inu to leave behind the congestion and high fees that come with mining Ethereum. The goal is to migrate to Shibarium at some point this year.
The parts supply problem
Along with this, Shiba Inu is also tackling one of his biggest problems, which is the supply of parts. He opened a burning portal last spring. This is intended to reduce the coin supply. The idea is a good one, and Shiba Inu today has approximately 549 trillion tokens in circulation, trading for a fraction of a penny. If they were priced at $1 each, the Shiba Inu market value would total $549 trillion.
By comparison, the entire cryptocurrency market was valued at around $3 trillion at its highest level last year. And large companies with a track record of profits and revenues are also less valued. For instance, AppleThe market capitalization of is approximately $2.3 trillion. Obviously, with so many chips, Shiba Inu can’t reach $1.
Reducing supply is the key. But the problem is that even that effort probably won’t work. To reach a market value of just under $1 trillion, 99% of the current token supply would need to be destroyed. That means most Shiba Inu owners today would have to burn their holdings — and they wouldn’t benefit from any cryptocurrency gains.
Yes, the catalysts are waiting for the Shiba Inu and could offer this cryptocurrency a boost. The token-burning effort could also help Shiba Inu’s value increase in the short term. But given today’s circulating supply, these efforts can’t compete with solid math, which tells us that Shiba Inu isn’t on track to hit $1.
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Adria Cimino holds positions in Ethereum. The Motley Fool holds positions and recommends Apple and Ethereum. The Motley Fool recommends the following options: $120 long calls in March 2023 on Apple and short calls $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.
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