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continues to break barriers with its huge price rallies, you could argue this is not farfetched. However, can Shiba Inu coin reach 1 cent?
Shiba is among the most successful cryptocurrencies this year. It has grown in price, market value, and products offering. At some point, the coin was among the top 10 largest cryptocurrencies in the market with a valuation of 35 billion dollars.
This came after a 500% rally within a week. For a coin that is less than 2 years old, analysts refer to this growth as an over-achievement.
After these successes, investors have now set their sight on the 1 cent price and are hoping to achieve it in the future.
Shiba Product Offering
The product offering is a key component in determining a coin’s value in the market. This is what determines its utilization and long-term prospects.
To achieve this goal, most crypto networks are striving to offer various innovative solutions to remain competitive. The Shiba network has been very busy in the last year or so developing and launching various solutions in the market. Some of these include;
- ShibaSwap Platform
- Shiboshis Non-Fungible Tokens
- Shiboshi Metaverse Games
ShibaSwap was the first on the list to go live. It is the platform that supports Shiba ecosystem transactions. It allows the trading of Shiba Nfts and SHIB cryptocurrency. It also supports other functions such as staking.
Shiboshis NFTs are a group of 10,000 unique digital images. They were launched earlier this year and have all been taken up in the market. Shiba claims they will be the lead products in the creation of Shiboshi metaverse games.
Shiboshi Metaverse Games
This is the latest product that Shiba is working to create. The concept of metaverse refers to bridging the gap between both the physical and virtual spaces.
With this, Shiba plans to launch its games known as Shiboshi games. This brings competition to other existing metaverse coins such as Decentraland and Sandbox. Although it is not ready, it gives an idea of the coin’s future.
These solutions are all critical in taking the coin’s price to 1 cent. The plan is to grow the coin users by increasing its utilization.
Shiba Investors Growth
Getting to 1 cent requires a huge number of investors to drive demand. Recently the coin hit the 1 million investors threshold, a huge start in the journey to 1 cent.
Although this increase in the number of investors hasn’t had an impact yet, it could have a bigger influence in the future.
Growing investors is not adequate if there is no corresponding demand. The investors need to be driving the buying momentum that will trigger a price increase.
The crypto market is still very young with fewer people investing in it. As the market grows, more investors are likely to come in helping grow the coin further.
Growth in the coin’s utilization will help bring in more investors and users. Hence, the rush to have more products in the network. This will play a bigger role in getting the coin to 1 cent.
Coin Burning Strategy
Shiba has been burning its coins for a while now. This is a key approach meant to control and reduce supply in the long term. Currently, there are over 500 trillion Shiba tokens in circulation. A reduction from the initial launch of 1 quadrillion coins.
Over 40% of the initial supply is in a dead wallet. An indication of this strategy is in play. Other coins such as Ethereum have managed to implement this strategy successfully resulting in a huge price boost.
Supply is a key element of price. Investors argue that the amount of Shiba tokens in circulation is too much making it a hindrance to getting to the 1 cent price. At the current levels, a 1 cent SHIB would have a market cap of 5 trillion dollars.
Challenges of Coin Burning
This $ 5 Trillion value is bigger than the total cryptocurrency market value today. In comparison, Bitcoin, the biggest and most famous cryptocurrency has a market value of 1 trillion dollars.
This indicates the difficulty that could exist in driving Shiba to a 1 cent coin. Analysts argue the current burning levels are inadequate to have a substantial effect on price. There is also an ongoing petition demanding the acceleration of burning to increase the coin’s value faster.
In his article detailing the launch of the Shiba Metaverse game, Shytoshi Kusama agreed to the fact that currently, the only way to grow the value of Shiba is through coin burning.
However, a lack of a substantial reduction could hinder the chances of the coin getting to the 1 cent price. Currently, there is no clear plan in the market of how coin burning is being undertaken. This is making the market unease about the sustainability of the whole exercise and whether it will achieve the desired results.
Meme Coin Tag
Shiba Inu Coin still retains the meme coin tag despite the rush to increase its utilization. Some investors in the market associate meme coins with jokes hence lacking any real value.
This has made some potential buyers keep away from the coin with others predicting the coin could collapse anytime in the future.
Although the coin developers are giving it more uses than just a fun coin, this remains a challenge in its expansion. Shiba Inu coin reference as the dogecoin killer acceleration this concept of meme coins. DOGE is a peer meme coin that also lacks clear uses in the market.
Regulation is also a key determinant of whether the coin will last long enough to get to 1 cent. So far, there haven’t been any challenges from the regulatory aspect. However, this could change at any moment depending on the situation.
There have already been some examples of how regulations can affect the market. Such an example is when China banned the mining and transaction in cryptocurrencies causing the market to crash.
However, positive regulation could be key in supporting the coin growth to 1 cent. As competitors with the government-controlled fiat currencies, the market remains keen to observe how the government will react in the long term.
Can Shiba Inu Coin Reach 1 Cent?
Finally, the answer to whether the Shiba Inu coin can reach 1 cent is dependent on many variables. These include coin utilizations, growth in the number of investors, coin burning success, and government regulation.
These factors will be key to unlocking this dream. If all goes according to plan, achieving a 1 cent SHIB is a possibility.