Shiba Inu (SHIB) has lost substantial luster over the last several years. SHIB was one of the most successful projects during the 2021 bull run, registering multi-million percentage rallies. Early investors made massive gains with minimal capital. SHIB’s meteoric rally led to a surge in its popularity, especially among new investors who wanted to make it big in crypto within a small period of time. While SHIB’s initial run was incredible, the asset seems to have fizzled out in the years since its peak. A majority of holders are sitting on significant losses. Fans and investors still hope Shiba Inu (SHIB) will return to its glory days, with many actively pursuing the coveted $1 price level. Let’s discuss why hitting $1 is nearly impossible for SHIB.
Why Shiba Inu Hitting $1 Is Near Impossible
The primary reason why it is nearly impossible for the memecoin to hit the $1 mark is due to its high supply. There are currently about 589 trillion Shiba Inu (SHIB) coins in circulation. If the price of each coin hits $1, the project’s market cap would climb to a $589 trillion. This is highly unlikely and nearly impossible as the figure is nearly quadruple the entire global GDP.
The only way for Shiba Inu (SHIB) to hit the $1 mark is for the project to undertake another Vitalik Buterin-style burn. The Ethereum (ETH) co-founder received half of SHIB’s entire supply upon launch. Buterin, however, decided to burn 90% of the coins he received. His actions led to a massive supply dip, aiding SHIB’s climb to its 2021 all-time high of $0.00008616.
Also Read: Shiba Inu Down 95% From Peak: Will It Dip Any Lower?
Shiba Inu (SHIB) lead developer Shytoshi Kusama, nonetheless, has said that burns alone will not help SHIB’s price. The project needs real adoption for prices to rally. The Shiba Inu (SHIB) team has made substantial innovation to bring more use cases to the project over the years. If the team can drastically reduce SHIB’s supply, while increasing adoption, we could see the memecoin climb to the $1 mark. However, the task ahead is nothing short of Herculean.
