The last time, when I was here, I pointed out the possibility of China’s crypto ban might not make a long term impact on Bitcoin growth potential. Things turned out pretty much as expected, right?
Let’s see what are the major talking points of last 48 hours,
- Bitcoin is back at $50k again.
- That along with crash of Facebook in stocks almost gave Bitcoin the chance to overtake Facebook’s total market cap. (For the first time in the history).
- Shiba Inu increased more than 70% in value.
The reason why I am writing this article is because, I have noticed strong claims on twitter and other social media platforms regarding Shiba Inu reaching $0.01 (1 cent) this year. I am holding nothing against Shibarmy. In fact I am a huge fan of what SHIB’s developers are bringing into the table. I am pretty satisfied with the price growth since the token is part of my portfolio too. But $0.01 is little too far, at least theoretically. I am giving you my unbiased opinion and possible scenarios.
This is why it is unlikely for Shib Inu to reach $.01:
- Why Bitcoin gained so much value?
Because Bitcoin is limited supply crypto currency. Only 21 million Bitcoin can be mined or available, not a single coin more. Bitcoin is deflationary because Bitcoin’s purchase power increases overtime.
- The main thing that could stop SHIB from reaching $0.01 could be its huge maximum supply.
Shib Inu have already 497 Trillion coins in the supply. As the numbers say, one Shib Inu values around $0.000029. Total Market Cap of Shib Inu is (Number of coins in supply X Value of 1 coin), $10 Billion.
Consider a scenario when Shib Inu reaches $0.01, so Total market cap will be 497 Trillion X 0.01 = 4.97 Trillion.
Do you know how much is the total market cap of entire crypto market? It is 2 Trillion, where Bitcoin holds $958 Billion (not even a Trillion) and Ethereum’s total market cap is $331Billion. That means the highest market cap of any crypto is Bitcoin with $958B. Ethereum has greater number of use cases and utility compared to SHIB.
Now you can see, how hard is Shib Inu to reach atleast $1 Trillion market cap is. So $4.97 Trillion? Yes, it is very unlikely.
However, The following things could drive Shiba Inu to $0.01
- Coin may surge more if Robinhood allow their customers to access Shiba Inu. Addition of coin on a major trading platform is bullish. When Robinhood listed Dogecoin, Doge’s value skyrocketed. Shib Inu is named as the DogeCoin killer. Current increased retail demand combined with Robinhood listing shows similar situation could play out with shib inu. Shiba Inu is already listed in major platforms like Coinbase, eToro and Webull.
- Coin Burning strategy should get Shiba Inu out of the Doghouse. There is an auto burn function was confirmed earlier this year by Shytoshi Kusama, Shib developer. We need a significant burn of coins, lower supply of Shib and increase value of each coin left. . (For information, burning coins us an effort to reduce the supply of coins from circulation. Usually the burning also boosts the value of the burned coins as did Ethereum some time ago.) The latest news says that the Shiba Inu developer will burn SHIB tokens. Coin burn means that a coin holder transfers a portion of his or her assets to a wallet which nobody can access. In effect, this destroys those coins and thereby reduces the cryptocurrency’s total supply.
- Another price factor depends on the success and adaption of ShibaSwap. After successfully releasing Shibaswap, the Shiba Inu token developers continues to build its ecosystem. They have introduced 2 new tokens along with Shiba –BONE and LEASH.
I could tell there are lot of Shiba haters and shiba lovers. Ryoshi and team are definitely working hard. They are in the process of building. They build Shiba swap, which is already done. They are coming up with NFT which we all know, is very hot now. They are working on a Layer 2 solution on top of Ethereum. So they are building an ecosystem. If you want to hold it for long time, they have a lot of promise than Dogecoin. But do they have potential to be $0.01 this year? In my opinion, it is unlikely! That is my honest viewpoint, unbiased. I gave you both sides. But my opinion can be wrong also. I want to remind you again, this is not a financial advice, just my perspective. Do proper research and invest wisely guys.