The start of 2024 has been particularly volatile for the cryptocurrency market as its flagship crypto, Bitcoin (BTC), experienced notable price fluctuations, leading to it surpassing the $52,000 threshold.
As the market shifts, so does one of the most popular meme coins, Shiba Inu (SHIB). The previous month has been particularly fruitful, as it brought gains that have led to SHIB testing the crucial resistance zone set at $0.000001.
The question, however, is whether SHIB can achieve a significant surge in price and reach the valuation of $0.50, and if so, when.
SHIB price prediction. Source: CoinCodex
However, algorithms predict exponential growth, which sees the token erasing zeros and reaching a $0.000401 valuation, an almost 4,000% increase from the current levels.
Shiba Inu circulating supply
To reach the full potential of its price, the token needs significant backing from investors and less supply than demand, which would drive its price further.
As of the current writing, Shiba Inu boasts a circulating supply of 589.289 trillion SHIB. This signifies a deflation in the supply of 410.66 trillion SHIB (41%) since May 2021 and 72.66 trillion SHIB (11%) since October 2021.
SHIB market cap. Source: CoinMarketCap
For Shiba Inuto to reach a price of $0.50, it would require a substantial increase in its market capitalization.
Currently priced at $0.000009796 with a circulating supply of 589,289,855,579,434 SHIB and a fully diluted market cap of $5.79 billion, achieving a price of $0.50 would necessitate a significant surge in market value of approximately $294.64 trillion in market capitalization. An outstanding figure, especially when considering the United States of America had a GDP of a little over $20 trillion in 2021.
Is there future for Shiba Inu?
An increase in market cap should align with investor demand and confidence in the token’s future potential, driving its price upwards. However, such a drastic price increase would require considerable market activity. It may be influenced by factors such as investor sentiment, market trends, and token adoption in various applications.
To counter the inflationary economics of this token, the development team has instituted regular burns to remove tokens from the circulating supply permanently.
The SHIB burn rate has surged dramatically by an astonishing 3,400%, permanently removing over 52 million SHIB tokens from circulation. This aggressive deflationary strategy has eliminated 410,708,459,364,680 SHIB from the initial supply, indicating a substantial change in the asset’s scarcity and potential value.
SHIB burn amount. Source: Shibburn
SHIB price analysis
Is SHIB worth buying? The present tells a story of gains, as SHIB was trading at $0.000009794 after an increase of 0.17% in the 24-hour timespan and 5.75% over the past week.
SHIB 30-days price chart. Source: Finbold
In the past 30 days, this crypto added 3.88% to its value.
This digital asset trades above its 200-day moving average, showing a positive trend. However, it has experienced a -26% decline over the past year and is now at -89% below its all-time high.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
