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There is no doubt Shiba Inu coin has been one of the most successful cryptocurrencies this year. It has risen to become among the 20 biggest cryptocurrencies in the market.
This success has made investors increase their scope of expectations and are now targeting the 1 cent price. The push of getting Shiba’s price to $0.01 is growing with the majority of Shiba fans believing it is just a matter of time before this happens.
However, the current reality is that Shiba is dipping instead of gaining. In the last few weeks, it has lost over 50% of its value making the dream to 1 cent dimer.
Most investors could argue this is a dip before another rally. However, what if it isn’t?
Below are some factors that could make it harder for the coin to get to this price.
Supply is probably the most important element in determining the price of the coin. Currently, Shiba has over 500 trillion coins in circulation.
With this amount of supply, a one-cent Shiba price would give the coin a market value of over 5 trillion dollars. There is no coin currently in the market with such value. If you combine all the coins’ total value, they are not close to this amount.
The leading crypto in market value is bitcoin with 1.2 trillion dollars. This is after the coin has been in the market for over a decade.
To handle the supply element, Shiba needs to accelerate coin burning from the current amount. The ongoing burning is insignificant in comparison to the supply.
Unless there are changes that reduce supply, Shiba coin may never get to this sentimental price.
Regulations are key in determining the future of cryptocurrencies. Some countries are already restricting their usage with others banning them in totality.
The key reason for this is that cryptocurrencies are competitors to government-controlled fiat currencies. This makes it harder for the governments to allow full decentralization as it means losing control.
Although some countries are allowing their use, they remain insignificant on the global stage. Lack of regulations is also limiting investors from putting their money in the coin.
Regulation is a major hindrance to the growth of the coin and could be part of the reasons it may never get to $0.01.
Competition is a natural hindrance to the growth of any asset. With hundreds of coins coming online recently, Shiba needs to utilize its competitive advantages to survive in the market.
It has become a common occurrence for new coins to outcompete the existing coins. A great example of this is Shiba itself. Within a couple of months, it has managed to dislodge hundreds of coins that came earlier.
To handle competition, Shiba needs to accelerate innovations and partnerships. This will help it stay on top helping it to attract more investors.
Any inadequacy in this area could see the coin lagging behind and finally losing value.
Although most investors are hoping the coin will rise to this price, there is also a chance it may never become a reality.
However, only time will tell how far it will get.