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After the recent Shiba Price rally, most investors are trying to figure out the next realistic price target in the short term.
This has led to speculations the coin could get to the 1 cent price. However, basing the argument on the current price, some analysts believe the $ 0.001 could be a more realistic target for the coin.
Various elements could determine how far the price of Shiba can go. Some of these include;
- Utilization capabilities.
- Demand and Supply Factors.
These factors are influenced by different players. However, how they play out going forward is key in determining the Token’s future Price.
Utilization Capabilities of SHIBA
Cryptocurrencies are created with a specific role to play. This makes part of the releasing white paper. It is the document investors rely on to determine the coin’s chances of success in the market.
Shiba is meant to be a transactional coin enabling peer-to-peer transactions. This capability is yet to achieve its full potential. However, there is are some signs of life as some partners are starting to explore its uptake.
Recently, AMC Entertainment CEO said that they are planning to start accepting cryptocurrencies such as Shiba as a mode of payment.
This will give the coin much-needed support that could trigger another rally. A new rally will be key in taking the coin closer to the $0.001 price tag.
Demand and Supply elements
With the current Shiba token supply exceeding 500 trillion, it remains a huge challenge getting to higher prices.
To handle this challenge, the coin is resulting in reducing the number of tokens in supply through burning. Although this has been ongoing for a while now, it is not producing the results most investors want to see.
Hence, there are calls to accelerate the process and hopefully help grow the price. With the current supply, the coin would have a market valuation of 500 billion dollars if it gets to the $0.001 price.
This would equal the current value of Ethereum. Going by the same timelines it has taken Ethereum to get to this valuation, Shiba still has close to 6 more years before it can get there.
Regulations are key in determining the value of the financial assets as they inform their legality. Investors shy away from putting their money in assets without regulations as the risks are higher.
Recently, there have been some positive signals from the regulators after authorizing trading in some of these assets. A key example is a move by the El Salvador government to allow trading in Bitcoin.
These moves have the potential of spilling over to other coins such as Shiba. Hence, the need to keep an eye on regulators going forward.
Positive regulations will help the Shiba coin rise towards the $0.001 mark.
Future of SHIBA Token
Before getting to the $0.01 value of Shiba, the focus should be on getting to the $0.001. This seems more realistic and highly likely.
As per these factors, there remains much to be done in getting the coin to these levels. Hopefully, these interventions will accelerate and help push the market higher.