Shiba Inu's Path to $1: A $589 Trillion Market Cap in Jeopardy
Shiba Inu (SHIB), a highly speculative cryptocurrency created in 2020 by Ryoshi, gained fame for its explosive price growth of 45,278,000% in 2021. An investor who bought $3 worth of SHIB tokens on January 1, 2021, would have had over $1 million by December 31 of the same year.
However, since then, Shiba Inu has declined by 93% from its peak and now trades at just $0.00005 per token. The cryptocurrency's lackluster adoption rate is partly to blame, with only 1,226 businesses worldwide accepting it as a form of payment. Furthermore, many investors consider Bitcoin (BTC) a legitimate store of value due to its consistent price growth since its launch in 2009.
The biggest hurdle for Shiba Inu reaching $1 per token is its enormous supply of 589.2 trillion tokens, giving it a market capitalization of $3.1 billion. Even if the price were to reach $1, the market cap would be an astonishing $589.2 trillion, surpassing the combined value of all 500 companies in the S&P 500 index and the U.S. economy's output last year.
The Shiba Inu community is trying to get around this supply issue by 'burning' tokens, which removes them from circulation forever. However, it would take an unimaginable amount of time - over 122,750 years - to burn enough tokens at the current rate to justify a price of $1 per token.