Will Shiba Inu Reach 1 Cent? Detailed Analysis
|Will Shiba Inu Reach 1 Cent in 2022?
Shiba Inu is likely to reach 1 cent in 2040 assuming that the price will increase 25% every year as well as ensuring that 2-3% of the coins are burnt every year. This can be faster if the price pumps at a much faster rate or more coins are burnt than assumed in our calculation.
Shiba Inu Coin Price
In the year 2021, Shiba Inu had risen 60 times in 6 months. So can Shiba Inu reach 1 cent in 2022?
Can Shiba Inu reach 1 cent? Let us do the Math first
|Price as of July 9th||$0.00001202|
|How many times will the price have to rise to become 1 cent?||832|
|Market Cap as of July 9th||$6.5 B|
|How much is 832 times $6.5 B?||$5.4 Trillion|
|If Shib were to rise 20% a year, how many years will it take to reach 1 cent?||37 Years|
|If Shib were to rise 50% a year, how many years will it take to reach 1 cent?||17 Years|
|If Shib were to rise 50% a year and also Burn 50% of the Coins||8 years|
Shiba Inu 1 cent: Understanding Market Cap Implications
Shiba Inu will reach 1 cent only if Trillions of Shiba Inu Coins are Burnt and Shiba Inu will be able to execute its plans around Shibarium, Shibverse, etc. There are other challenges –
- At a $0.01 value, the market cap of Shiba Inu will be roughly $5.4 trillion, which is approximately 30 times more than Ethereum itself, on whose blockchain it is dependent. The market cap will be 3 times more than Apple (AAPL) and 5 times more than Tesla (TSLA), 15 times more than Bitcoin.
- If Shiba Inu reaches a 1-cent price with a market cap of $5.3 trillion, it will be more than what the US government raises in annual taxation ($4 trillion). To meet the $0.01 target, a significant number of SHIB coins will have to be burnt.
Will Shiba Inu reach 1 cent? Why it is possible
A market cap of $5.3 Trillion may sound crazy today but not if it was 20 years from now or later. With burns of 2-3% a year, this can even be faster and the market cap requirements could be much lower. The real question is what are the 3-4 factors that could drive Shiba Inu towards 1 Cent
- Organized and High-Quality Leadership: While this may not be such a requirement for Bitcoin, Shiba Inu needs vision, oversight, and execution. Vitalik Buterin for example.
- Execution of Plans: The core of what makes Ethereum such a successful cryptocurrency is a solid blockchain framework and widespread use which in turn drives demand for Eth coins. Shiba Inu has numerous plans whether it is their own Layer-2 Block Chain, A Metaverse, or the latest plan to launch a Stable Coin. Implementing these will need massive execution capability because each in itself is a company on its own.
- Sustaining current momentum: Shib is already well organized as a community, leads in payment adoption, and continues to Burn at a steady pace
These factors are perhaps more crucial than the daily movements in Price
Can Shiba Inu reach 1 cent? Current Shiba Predictions
According to our latest Shiba Inu Price Predictions, Shiba Inu is likely to rise to $0.000199 by the end of 2030. That translates to a 50% increase every year for the next 8 years. If this growth rate continues, SHIB is likely to reach 1 cent by 2040. Shib could also reach 1 cent assuming a more realistic 25% growth and 50% burn by 2040.
Will Shiba Inu reach 1 cent by 2025?
To reach 1 cent by 2025, Shiba Inu will have to
- Rise by 10-fold every year for the next 3 years
- Rise by 5 fold every year for the next 3 years and also burn 20% of coins every year during this period
- Rise 2 fold every year but burn 99% of the coins
All the above scenarios are unrealistic and impossible. Therefore, it is fair to say it is impossible for Shiba Inu to reach 1 cent by 2025
Can Shiba Inu reach 1 cent? Impact of Shiba Inu Burn
Burn involves sending coins to a ‘dead’ wallet.
A large number of Shib tokens need to be burned to reduce the Tokens in Circulation. In theory, this should increase the value of each remaining coin. Every day several million coins are burned but the burn rate is very low. On the 14th of February, a burn party was organized to burn millions of Shib Tokens.
While Burn alone is not enough, such events sustain the interest of investors Shiba Inu. There are 549 Trillion SHIB Coins in circulation at the moment.
Can Shiba Inu reach 1 cent? The lack of own Blockchain
Cryptocurrencies like Bitcoin and Dogecoin have their independent blockchain and are standalone currencies, they have a mining system, backed by thousands of mining computers that are keeping the system alive and running. But SHIB is an ERC-20 token-based cryptocurrency similar to Binance Coin and Tether.
The problem with this is, unlike Ethereum, there is no demand for Shiba Inu at the moment (beyond payments) as there is no blockchain that consumers and businesses can use. Typically using blockchains involves paying a fee in the native cryptocurrency.
Will Shiba Inu reach 1 cent? Shiba Inu Performance 2022
SHIB has outperformed Doge in the last 5 days. But has nearly lost 67% to date. Shib was trailing Ethereum by a mile until the crash of Luna.
In January, Doge fell 18% while SHIB Fell 36%, Between February and April, SHIB rose 5% while Doge fell 3%. Between May and July, both cryptocurrencies have fallen by nearly 50%.
Shiba’s competitive performance in the last 5 months is on account of better planning and execution.
Will Shiba Inu Reach 1 Cent: Last One Year Rise and the Responsible Factors
On Paper, Shiba Inu has risen 403x in the last year. There are various factors which are listed below:
- The Shiba Inu came into the limelight since its launch as investors were looking for the next bitcoin (BTC) to invest in, but the real push was in May when it rose 2405% in just a span of three days and hit a fresh peak of $0.0000388 on 10th May. The rally was primarily due to an interview with Elon Musk where he termed DOGE as a “hustle”, which triggered a sell-off in DOGE and fresh buying in SHIB.
- The prices of meme tokens are so reactive to Elon Musk’s tweets that they jumped after the Tesla CEO tweeted a photo of a Shiba Inu puppy in a Tesla vehicle on 4th October. Other similar currencies like Dogecoin and Shiba Floki (FLOKI) had met a similar fate.
- In late November, a couple of positive news like a listing on the Kraken exchange and an announcement by e-commerce retailer Newegg that it will accept SHIB as payment buoyed the price. Another positive factor is the appointment of gaming veteran William Volk.
- On 8th December, Shiba Inu revealed that a strategic work-for-hire contract is signed with Playside, the Australian video game developer. The plan is to develop a multiplayer Collectable card game. Luckily, on the same day of exchange Bitstamp announced to list SHIB, the following day on its platform. These factors contributed to taking the upside of the price.
Will Shiba Inu Reach 1 Cent: Factors Against Shiba Inu
Shiba Inu’s price is currently changing hands slightly over $0.000010 and it is following the crypto market trend which fell below the $1T market cap. Bitcoin is also trading southwards, down by almost 3%.
- Whales: Shib price in the past has been mostly driven by the Whales. The Whales have come to the rescue of Shiba on many occasions. This time, the whales seem to have deserted Shib and allowed the price of SHIB to free fall. However, one data shows that SHIB is the biggest altcoin or the favorite altcoin among the ETH whales.
- YTD Performance: Crypto market is down and almost all the cryptos are lower and this has been the case since January 2022. But what is more concerning is that SHIB is one of the worst-performing crypto this year. SHIB has lost nearly 70% of its value this year.
- Technicals: The technicals have also worsened for Shiba Inu, hinting at SELL
Will Shiba Inu reach 1 cent? The lack of Long-Term Shib Holders has halted the Rise of Shiba Inu
- The Shib Army along with different independent organizations have been putting an effort to burn a large number of Shib tokens. However, their effort is proving insufficient as there has been very little change in price after every burn.
- The main reason behind this lack of a good number of long-term Shib holders. As per the data by IntoTheBlock 75% of Shib holders are within a 1-12 months time frame while 3% of the SHIB holders are less than 1 month old. There are 22% of SHIB holders older than 1 year as of now as per the data.
Will Shib reach 1 cent?: Why Shiba Inu Should be Part of Your Long-Term Investment
The lack of long-term Shib token holders has been a major roadblock in rising of Shib Inu’s price. Shiba Inu is down by over 70% this year, yet it is advisable to have Shiba Inu as a part of a long-term investment.
- There has been news of Ethereum whales purchasing Shiba Inu tokens in bulk. Whales are the ones who own a great deal of cryptocurrency. If the ETH whales are shifting to Shiba Inu, it is evidence of increasing trust for the Shiba Inu ecosystem.
- The fact that Shib Inu developers are transforming Shiba Inu into more than a “Meme Token” is attracting the big whales towards it. This year Shiba Inu is believed to be launching launch a layer-2 scaling solution and also entering the world of the metaverse.
- The growing acceptance of the Shiba Inu token as a mode of payment can be considered as the other reason why one should have a Shib token in their crypto wallet for the long term.
Will Shiba Inu Reach 1 Cent? Conclusion
Shiba Inu 1 cent is a realistic possibility under the conditions that it could take a couple of decades and Shib is able to execute its plans during that period. Our concern is that the Shib leadership appears to be trying to do many things at the same time and following a ‘flavor of the season’ approach. The effort could be equal to doing what Polygon, Decentraland, and Luna are all trying to do but in a single company. It is a herculean task!
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.