- The likelihood of SHIB reaching $0.01 is remote due to scalability, total supply and the competitive market.
- Shib Army’s efforts to burn tokens may not guarantee an increase in token price and may damage its long-term viability.
- Despite significant challenges, the engagement has established SHIB as more than a speculative asset.
Shiba Inu (SHIB), the meme-inspired cryptocurrency, has gained significant attention and investment in recent years, thanks to its impressive initial growth and dedicated community. However, the likelihood of the SHIB token reaching even $0.01 is remote at best, despite Shib Army’s efforts to burn tokens at an aggressive pace.
This article will explore the challenges Shiba Inu faces in reaching this price, including its lack of utility and use cases, its huge total supply, and its highly competitive market.
While some early investors have become extremely wealthy thanks to the cryptocurrency’s impressive growth, the challenges SHIB faces in reaching $0.01 or more should not be underestimated.
The challenge of scaling
One of the main challenges facing Shiba Inu is scaling. While the cryptocurrency’s market capitalization has grown significantly, its transaction volume has not kept pace.
This lack of scalability could pose a major challenge to the long-term growth of the cryptocurrency.
In addition, the Shiba Inu token’s circulating supply of 589 billion tokens is a major hurdle to overcome. With so many tokens in circulation, the potential for dilution is significant, which could lead to a decline in the value of the token over time.
What is Shib Army?
Shib Army is a passionate community of investors who are committed to the success of the Shiba Inu coin. Shib Army has played an important role in the growth of the cryptocurrency, promoting its use and creating real-world use cases and partnerships.
The community is made up of people from all over the world who share a common interest in Shiba Inu and its growth potential.
Shib Army’s efforts
Despite significant challenges, Shib Army remains optimistic about the long-term potential of cryptocurrency. The community’s dedication to building partnerships and real-world use cases, as well as its commitment to charitable causes, has helped establish the Shiba Inu token as potentially more than a speculative asset.
Shib Army has launched a variety of initiatives, including a decentralized exchange, a platform for NFT and a payment gateway, that demonstrate its commitment to value creation beyond mere speculation.
In addition, the community’s charitable arm, the Shiba Inu Rescue Association, has helped generate positive publicity for the Shiba Inu currency and could help drive adoption and increase its legitimacy. All of this development has raised the community’s hopes that the price of SHIB will increase.
Shiba Inu: The $1 Dream
Shiba Inu investors believe SHIB has the potential to reach $0.01 or even $1. However, the reality is that reaching even $0.01 is a challenging task for cryptocurrencies.
Currently, the Shiba Inu coin trades at approximately $0.000013, with a market capitalization of around $7.5 billion. For SHIB to reach $0.01, its market capitalization would need to increase by a factor of 1,000. This would require a significant amount of investment and demand for the SHIB token, which is difficult to achieve.
To put this in perspective, Bitcoin, the world’s largest cryptocurrency, has a market capitalization of around $468 billion. Even if the SHIB token were to reach a market capitalization of $46 billion, which is a significant achievement, it would still only be 10% of Bitcoin’s size.
So what about burning through the supply of SHIB to boost the price?
Shiba Inu: The limits of token burning.
Burning tokens has become a popular strategy among some cryptocurrencies to increase their value and reduce their overall supply. However, burning tokens is not a panacea for all the challenges a cryptocurrency faces. And the impact on its long-term viability can be complex.
Token burning can help reduce the supply and increase the value of a cryptocurrency in the short term. It is not a sustainable strategy for long-term growth.
Burning tokens does not directly create any additional utility or use cases for the cryptocurrency. Which can also affect its long-term value.
In the case of the Shiba Inu coin, burning 83 billion tokens may have helped increase the value of the cryptocurrency in the short term. However, it represents only 0.015% of Shiba Inu’s market capitalization. And it does not address the long-term challenges facing the cryptocurrency.
In addition, token burning can also damage the long-term viability of a cryptocurrency. If a cryptocurrency burns too many tokens, it can limit the potential for future growth and development.
With an astronomical supply, the potential for dilution of the SHIB token is significant. Which could lead to a decrease in the value of the coin over time.
In addition, burning tokens can also limit the potential for innovation and development in a cryptocurrency. If a cryptocurrency burns too many tokens, it can limit the resources available for future developments and partnerships.
Final Considerations.
Token burning can help generate positive publicity and increase the value of a cryptocurrency in the short term. However, it is not a sustainable strategy for long-term growth.
The lack of utility and use cases for the SHIB token, the huge total supply, and the highly competitive market remain significant challenges. These must be addressed if the cryptocurrency is to establish itself as a viable alternative to traditional financial systems, no matter how strong the Shib Army is.