Will Shiba Inu Hit $1 Anytime Soon?

Hey there, folks! It's your friendly neighborhood crypto connoisseur, and today we're talking about the one and only Shiba Inu.

This dog-inspired digital asset had a monster return in 2021, but since then, it's come back down to Earth to share in the crypto winter along with every other project.

So, what's the deal? Well, the overall weakness in the crypto market and more realistic expectations about Shiba Inu itself have contributed to this dip.

But even with all that, it's still the 14th most valuable cryptocurrency with a market value of around $6.2 billion.

Now, I know what you're thinking: Can Shiba Inu reach the coveted $1 per token from its current price of $0.000011? Well, let's dive in and see.

To start, Shiba Inu was created by an anonymous founder who wanted to add more functionality to the world of cryptocurrency.

They built it on the Ethereum network, making it compatible with the Ethereum ecosystem in an effort to attract more attention from developers and users.

The initial supply of Shiba Inu is truly mind-boggling with 1 quadrillion tokens (that's 15 zeroes).

Half of these tokens were sent to Ethereum co-founder Vitalik Buterin, who sold $1 billion worth to donate to India's pandemic relief fund.

He then burned or sent to a dead wallet another 40% of the tokens, which helped bring Shiba Inu into the public eye.

But here's the thing: Shiba Inu doesn't have a real competitive advantage in the world of crypto.

There are other projects like Ethereum and Cardano that have more use cases, such as decentralized finance and non-fungible tokens.

These blockchains have also attracted a lot more interest from speculators, users, and developers, making it unlikely for Shiba Inu to ever reach $1.

So, why isn't it likely for Shiba Inu to hit $1? Well, there are three things that could push up the price of SHIB, but they're all quite unlikely.

The first is continuing to burn tokens, as Vitalik Buterin did.

The idea is that reduced supply and increased demand will boost SHIB's price, but with such a huge supply of tokens, it would take a lot of burning to make a difference.

The second catalyst is the development of the network. There's a Layer-2 solution in the works called Shibarium that's supposed to increase network functionality while lowering transaction fees.

There's ShibaSwap, and a Shiba Inu metaverse, all aimed at attracting more users and driving up the price of SHIB.

But, let's face it, these updates can't compete with the dominance of Ethereum.

And lastly, like many meme-inspired cryptocurrencies, Shiba Inu's price could receive a boost from another social media hype cycle.

But relying on internet buzz to predict the price moves of a specific cryptocurrency seems like an impossible task.

Let's put things into perspective. If Shiba Inu were to reach $1 per token, its entire market value would be a staggering $549 trillion.

That's more than the total global wealth as estimated by McKinsey & Co. So, as much as we'd love to see Shiba Inu hit $1, it's just not in the cards.

I'm not saying I've never invested in Shiba. I actually believe you should have a small number of speculative meme coins in your portfolio, and I do mean small.

But let's keep things in perspective a bit. Those who made millions with Shiba invested near its inception and sold at the top of the last bull run. The majority of gains were already made, and now Shiba sits at number 14 by market cap which is a remarkable feat.

It's highly unlikely you're going to see 100X returns by 2024/2025.

Recent Shiba Burn

Let's talk about the recent burn activity that went down. I read this article by AmbCrypto on January 10, 2023, and Etherscan showed that there was a huge transaction where a single wallet burned 14 million SHIB.

That's a lot of tokens! Usually, the daily burn rate for SHIB is in the millions, but this was a particularly large transaction.

Well, this burn activity caused a huge spike, about 1395% in a 24-hour period.

This brought the total burn supply to 410.38 trillion and resulted in a 4.09% price uptick from the previous day. The 24-hour trading volume also followed this trend, with a 125% surge recorded by Santiment.

However, despite the spike in burn activity, the Shiba Inu network growth was not doing too well. In fact, it hit its lowest point in over six months. At press time, the network growth was at 533, which means it wasn't one of the top projects getting new onboarding addresses.

On-chain data also revealed a decline in 24-hour active addresses. This decline meant that fewer users were interacting with the SHIB network, leading to a decrease in the one-day SHIB circulation to 341.2 billion. The day-to-day flow of circulation has been inconsistent with constant irregularities.

But here's the thing, holders of SHIB can still take solace in the fact that the token is diving into partnerships and increasing its utility. The official Twitter page recently announced that there could be another major collaboration in the works.

So, what's the bottom line? Well, the Shiba Inu [SHIB] burn strategy has failed to achieve its objectives repeatedly, but the recent colossal burn transaction caused a spike in its price and trading volume.

However, its network growth has hit its lowest point in six months and there has been a decline in 24-hour active addresses and one-day circulation.

But hey, the token is still making moves and partnering up, so who knows what the future holds. Just remember, always exercise caution and don't let greed get the best of you, especially during a bull run when YouTubers are going to be shilling this token, saying it will reach $1 by such and such a date.