In the year 2021, Shiba Inu had climbed 60 times in 6 months. So Shiba Inu can reach 1 cent in 2022?
Can Shiba Inu reach 1 cent? Let’s do math first
Shiba Inu has fallen in the last 24 hours and now the price of SHIB is slightly above $0.0000010. SHIB managed to get rid of a “0” from its price. However, SHIB must obtain the support of the SHIB army to keep the price of SHIB above $0.0000010.
Here are the calculations of how SHIB can reach 1 cent:
|Price as of July 2||$0.00001035|
|How many times will the price have to go up to become 1 cent?||975|
|Market capitalization as of July 1||$5521 million|
|How much do 975 times 5521 million dollars cost?||$5.4 trillion|
|If Shib were to increase by 20% per year, how many years would it take to reach 1 cent?||25 years|
|If Shib were to increase by 50% per year, how many years would it take to reach 1 cent?||12 years|
|If Shib were to increase by 50% per year and burn even 50% of the coins||6 years|
Will Shiba Inu reach 1 cent by 2025?
Assuming an annual return of 50% and an increase of 50%, the price of Shiba Inu cryptocurrencies will be able to reach 1 cent by 2031. Therefore it is almost impossible for Shiba Inu to reach 1 cent by 2025.
Will Shiba Inu reach 1 cent? Shiba Inu Performance 2022
Speaking about shib’s performance since January 2022, Shiba Inu is one of the worst performing cryptocurrencies since January 2022. Shiba has lost about 70% of its value since January 2022. Dogecoin on the other hand is down about 61% since January 2022.
Shiba Inu will reach 1 cent: factors against Shiba Inu
The price of Shiba Inu is currently changing hands slightly above $0.00010 and is following the trend of the cryptocurrency market that has fallen below the market capitalization of $1 million. Bitcoin is also trading southwards, down nearly 3%. Speaking of Shiba Inu, it is also trading south down by almost 1%
The things that don’t work for Shiba Inu at the moment are:
- Whales: The price of Shib in the past has been mostly driven by whales. Whales have come to Shiba’s rescue on many occasions. This time, the whales seem to have abandoned Shib and allowed the price of SHIB to have a free fall. However, one fact shows that SHIB is the largest altcoin or favorite altcoin among ETH whales.
- YTD yield: The cryptocurrency market is declining and almost all cryptocurrencies are lower and this is the case since January 2022. But what’s more worrying is that SHIB is one of the worst performing cryptocurrencies this year. SHIB has lost almost 70% of its value this year.
- Technicians: Technicians have also gotten worse for Shiba Inu, suggesting SELL
Shib Inu 1 Cent – Understanding the Implications of Market Capitalization
Shiba Inu will only reach 1 cent if trillions of Shiba Inu coins are burned and Shiba Inu will be able to execute his plans around Shibarium, Shibverse, etc. There are other challenges –
- With a value of $0.01, Shiba Inu’s market capitalization will be about $5.89 trillion, which is about 10 times higher than Ethereum itself, on whose blockchain it depends. The market capitalization will be 3 times more than Apple (AAPL) and 5 times more than Tesla (TSLA), 10 times more than Bitcoin.
- If Shiba Inu reaches a price of 1 cent with a market capitalization of $5.89 trillion, it will be more than what the U.S. government increases in annual taxation ($4 trillion). Since SHIB is based on Ethereum ERC20, it makes no sense that Shiba Inu’s market cap can exceed Ether’s market cap. To reach the $0.01 goal, a significant number of SHIB coins will have to be burned.
- Cryptocurrencies such as Bitcoin and Dogecoin have their own independent blockchain and are autonomous currencies, they have a mining system, supported by thousands of mining computers that keep the system alive and running. But SHIB is a cryptocurrency based on ERC 20 tokens similar to Binance Coin and Tether. So the SHIB token offers nothing new to investors to push its market capitalization to such huge levels.
Shiba Inu will reach 1 cent: the increase of the last year and the factors responsible
On paper, Shiba Inu has risen 403 times in the last year. There are various factors that are listed below:
- The Shiba Inu has come to the fore since its launch as investors were looking for the next bitcoin (BTC) to invest in, but the real boost was in May when it rose 2405% in just one three-day span and reached a new peak of $0.0000388 on May 10. The rally is mainly due to an interview with Elon Musk in which he called DOGE a “hustle”, which triggered a sell-off of DOGE and new purchases in SHIB.
- Token meme prices are so responsive to Elon Musk’s tweets that they jumped after Tesla’s CEO tweeted a photo of a Shiba Inu puppy in a Tesla vehicle on Oct. 4. Other similar currencies such as Dogecoin and Shiba Floki (FLOKI) had met a similar fate.
- At the end of November, a couple of positive news such as an announcement on the Kraken exchange and an announcement from ecommerce retailer Newegg that it will accept SHIB as payment supported the price. Another positive factor is the appointment of game veteran William Volk.
- On December 8, Shiba Inu revealed that a strategic rental work contract is being signed with Playside, the Australian video game developer. The plan is to develop a multiplayer trading card game. Fortunately, on the same trading day Bitstamp announced to list SHIB, the following day on its platform. These factors helped to take the price rise.
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 must be burned to reduce the tokens in circulation. In theory, this should increase the value of each remaining coin. Several million coins are burned every day, but the burning rate is very low. On February 14, a burn party was organized to burn millions of Shib tokens.
While Burn alone is not enough, such events support the interest of Shiba Inu investors. There are currently 549 trillion SHIB coins in circulation.
Will Shiba Inu reach 1 cent? How the lack of long-term shib holders stopped the rise of Shiba Inu
- The Shib army along with several independent organizations have made an effort to burn a large number of Shib tokens. However, their effort is proving insufficient as there has been very little price change after each burn.
- The main reason for this lack of a good number of long-term Shib holders. According to data from IntoTheBlock, 75% of Shib holders are within 1-12 months, while 3% of SHIB holders are less than 1 month old. There are 22% of SHIB holders over the age of 1 year as of now according to the data.
Shib will reach 1 cent?: Why should Shiba Inu be part of your long-term investment
The lack of long-term Shib token holders has been a major obstacle to rising the price of Shib Inu. Shiba Inu is down more than 70% this year, but it is advisable to have Shiba Inu as part of a long-term investment.
- There have been reports of Ethereum whales buying Shiba Inu tokens in bulk. Whales are those that own a large amount of cryptocurrency. If PF whales are moving to Shiba Inu, it is evidence of a growing trust in the Shiba Inu ecosystem.
- The fact that the developers of Shib Inu are turning Shiba Inu into more than one “Meme Token” is attracting big whales to it. This year it is believed that Shiba Inu is launching a layer-2 scaling solution and is also entering the world of the metaverse.
- The growing acceptance of the Shiba Inu token as a payment method can be considered as the other reason why you should have a Shib token in your long-term crypto wallet.
Shiba Inu Will Reach 1 Cent? Conclusion
Currently, Shiba Inu is at a very important level and could see a major upward or downward movement in 2022. In addition, it should be borne in mind that the market capitalization of Shiba Inu is much smaller than Bitcoin and Ethereum and this makes it much more volatile if it has witnessed a strong sell-off in the last two weeks, the upside potential is also similar and it is a matter of time before Shiba Inu will march towards an all-time high. But for all practical purposes, investors should not be disappointed that Shiba Inu will touch 1 cent.