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After the last Shiba Inu Coin price rally last month, most investors have set their eyes on the I cent target. However, is there a chance of the coin getting to this level?
To answer this question. We need to evaluate some of the existing facts. There is no doubt that Shiba is among the best performing cryptocurrencies this year. Within a very short period, its market value has risen to become among the top 10 cryptos in the market.
Currently, it has a fair cap of at least $28 Billion and has been alternating positions with Dogecoin. It’s a fellow meme coin. The coin has a circulating supply exceeding 500 trillion coins.
The meme coin challenge
Although meme coins have been getting huge market attention in recent years, there is still a large number of investors who believe they will fail in the long term.
By the fact they are created to make fun of the market, it creates doubt on how far they will go as financial assets. However, to break from this perception, Shiba is accelerating the creation of supporting utilities such as offering NFT digital assets.
This is the only way to convince investors it has more to offer than just being a fun coin. Shiba needs to keep adding utilities to its network to attract higher demand. In long term, the only coins that will survive are those offering day to day solutions and are versatile
These are critical elements that could push Shiba to the $0.01 level.
Supply is a critical element in determining price. It is one of the reasons the coin is trading below a cent. The huge supply remains a challenge for the coin getting to $0.01. With the current supply of 500 trillion coins, it would need a huge amount of demand driving to 1 cent.
With the current supply, it could have a market cap of at least 5 trillion dollars if it got to the 1 cent level. This is huge considering the leading crypto Bitcoin has a market cap of 1.2 trillion dollars despite being in the market for the last decade.
Hence, it will be difficult for the coin to get to 1 cent soon as long as the supply levels remain the same.
Shiba Inu Coin Burning
To counter this challenge, the coin has introduced a burning mechanism that aims at reducing the amount of supply in the long term.
This is one of the realistic ways that could give the coin the much-needed value. However, some analysts believe the amount of coin burning taking place is not adequate. More needs to be done if this strategy is to achieve the desired results.
At the current pace, it will take at least 150 years to just burn 1% of the coins in supply.
Future of Shiba Inu Coin
When you critically evaluate all these elements, the dream on a $0.01 Shiba coin seems farfetched. Some of the measures to grow its values are welcome but it needs more.
Although it is difficult to determine the future, the 1 cent dream remains only if the issue to do with demand and supply is sorted.