Could the Shiba Inu Reach $1?

 

Could the Shiba Inu Reach $1?

The popular cryptocurrency has overcome incredible odds and has yielded huge returns for some investors.

Among the most explosive investment vehicles in history, few can come close to what the Shiba Inu (SHIB 1.22%) cryptocurrency has achieved. In 2021, the digital token made roughly 46,000,000% gains, meaning those lucky enough to invest $1,000 at the beginning of the year and sell it later at the appropriate time became multimillionaires.

With such incredible earnings, it's no surprise that people are wondering if the SHIB coin is on its way to more impressive earnings. And the question of whether it can reach the $1 price point is a question that comes up often in crypto circles. So, can the popular meme token really hit $1?

SHIB currently has a maximum supply of 589.7 trillion coins. It has a market cap of approximately $13.3 billion and ranks as the 15th largest cryptocurrency by valuation. If the token were to reach a price of $1 per token, that would mean it would have a staggering $589.7 trillion market cap.

To achieve this, Bitcoin will need to increase 725 times its current market cap, which currently has a market cap of around $813 billion. If that doesn't seem counterintuitive enough, consider that $589.7 trillion would be roughly 6.3 times the estimated global gross domestic product of roughly $94 trillion in 2021.

SHIB's performance was already incredible and could still yield bigger gains, but even the most bullish investors should move forward with reasonable expectations about its growth potential.

What's next for the SHIB token?

The overall cryptocurrency market has grown by an incredible amount in less than 12 years, but the combined value of cryptocurrencies has also retreated significantly from its lifetime high reached in October 2021.

The Shiba Inu hit an all-time high of $0.000086 on October 28 last year, and its price has pulled back with bearish momentum for the broader market. While the current token price is at roughly $0.000024, the coin is currently down about 72% from its peak.

Shiba Inu also continues to compete with thousands of other cryptocurrencies currently in the market and may face pressure as more new digital tokens are created. Check out the chart below that tracks the total number of cryptocurrencies available from 2013 to February 2022:

With the growing number of coins to choose from, SHIB's value may be under pressure, but the digital token could post bigger gains if the broader cryptocurrency market sees another strong uptrend, a rebound in meme-backed momentum, or increased adoption. investors or businesses. If a dramatic amount of coins is burned, this will also result in a reduction in overall supply and possibly significant gains for the cryptocurrency's token price.

Even after a major pullback from its peak, the SHIB token is still up around 42,000% from last year and has an enthusiastic, highly engaged supporter base. If the token were to bounce back to its highest level, this would result in a 258% gain. Achieving a $100 billion market cap might sound pretty mundane compared to a nearly $590 trillion market cap, but it's much more realistic and would still mean more than 650% gain from current pricing levels.

Just because the $1 price point seems nearly impossible doesn't mean the SHIB can't make significant gains from current pricing levels. Investors should make decisions with reasonable expectations in mind and understand that it is a high-risk, high-reward cryptocurrency.

Disclaimer : IT IS NOT INVESTMENT ADVICE.