The Shiba Inu (SHIB) is among the most popularly known meme inspired cryptocurrency coins. It has been around since its very foundation back in 2020. This was initially a joke devised by a person known as Ryoshi, a pseudonym, and which came to be known as the Shiba Inu.
It is the alternative for Dogecoin, but SHIB has outrun it right away and became the biggest in community and top-notched in the ranking of cryptocurrencies per market capitalization. But probably the most frequent question is: will Shiba Inu coin reach $1?
In this article, we will glance at various factors of price potential, observe market dynamics, and see what experts have to say.
Will Shiba Inu Coin Reach $1?
Let’s find it out here:
Market Dynamics: Current Price
Presently, Shiba Inu trades at about $0.000014. While the coin has gained popularity, for such a lowly valued cryptocurrency, it would take a long time for the price to reach $1. Let’s first find out some figures with regard to circulating supply and market capitalization.
The total circulating supply of Shiba Inu is around 589 trillion coins. For SHIB to achieve a value of $1, its market capitalization would need to touch over $589 trillion, way above the current total market cap of combined cryptocurrencies estimated at about $1 trillion. That one contrast in and of itself puts into perspective the monumental task for SHIB to try and reach that price.
What Determines the Price of the Shiba Inu?
What Determines the Price of the Shiba Inu?
- Market Sentiment: The highly volatile nature of the cryptocurrency market makes it seem like a hostage to sentiments. Positive news, endorsement by big shots, or wider trends in the market can well take these prices to their extremes. While SHIB has risen in value due to bullish market conditions, at points in time it still remains highly vulnerable to downturns.
- Community Engagement: Events in the shape of community-driven projects, charity events, and social media campaigns drive interest and investment into the coin. A strong community can keep the momentum going, and demand upwards.
- Utility and Adoption: SHIB has to make sure it provides utilities and does not end up being like every other meme coin. The recent partnerships, real utilities in the DeFi sectors, or even integrations into the current payment system can add quite a lot of value to it.
- Regulatory Environment: The cryptocurrencies represent a dynamic regulatory environment. A change in regulations can alter investors’ confidence and market dynamics. While a friendly regulatory environment would result in more significant adoption of SHIB, stringent regulations would choke its growth.
SHIB Expert Predictions
There have been various analyses and predictions on the future movement of Shiba Inu price. Some important insights are listed below:
- Short-Term Predictions: The short-term predictions by analysts show that by 2024 the SHIB can be trading around 0.000012 to $0.000023. This is some modest growth but far below the targeted $1.
- Long-Term Predictions: Looking ahead, some forecasts even go as far as to suggest that SHIB will rise to $0.000048-$0.000095 dollars by 2026 and may peak as high as $0.000144 by 2030. The suggestion of such figures further underlines that the price movements in SHIB are highly speculative in nature, with any chance of upward movement, but very, very far from the $1 mark.
- Analysts’ Market Views: A portion of analysts’ views thinks that setting a target valuation of $1 is highly unrealistic for SHIB given the prevailing supply and market dynamics. For example, a crypto analyst said reaching $1 is “far-fetched,” meaning investor expectations are unreal.
Supply and Demand Function
SHIB’s price follows the demand and supply principle, which is one of the main principles in economics. In the eventuality of it ever reaching $1, it would have to see extremely high demand, considering its circulating supply of 589 trillion coins. From how cryptocurrencies have acted historically, the higher the demand of a coin, if the supply is low, the higher its price.
One of the topics in the community is the supply issue, which would permanently take some of the total supply out of circulation through token burn. In theory, this would raise the value of the remaining tokens, but any such measures are speculative at best and can only see real success if it is enacted by large portions of the community.
Market Capitalization compared with other Cryptocurrencies
Market Capitalization compared with other Cryptocurrencies
In comparison, the market capitalization of Shiba Inu is relatively small to that of top cryptocurrencies.
- Bitcoin has a market capitalization of over $700 billion while that of Shiba Inu is approximately $8.2 billion as of August 2024.
- The market capitalization of Ethereum stands at an impressive $330 billion, a more-than-40-times size over SHIB.
- Other key cryptocurrencies include the BNB, which has an $83 market capitalization, Solana with $74 billion, and XRP with $34 billion-all much more than Shiba Inu.
It’s really impossible for Shiba Inu to be on the same ground as leading cryptocurrencies due to the gigantic circulating supply of 589 trillion SHIB tokens against Bitcoin’s 21 million BTC. To achieve this, its market capitalization would need to be larger than all crypto is today if it were to reach a price of $1.
Conclusion
Having attracted the imagination of many investors, and with further growth potential, reaching a price of $1 is highly unlikely under the present dynamics in the market, supply, and expert predictions.
The market for cryptocurrency is very unpredictable, so even though SHIB will undergo significant changes in pricing, investors should be cautious and not set their hopes so high.
At the same time, Shiba Inu, even though it appeared in 2020 to join the top 13 by market capitalization, is still a small player as a player of the broader cryptocurrency market. Its market cap stands less than halfway that of Dogecoin, whose market capitalization is $17 billion.
