Shiba Inu is one of the most popular meme tokens in the market. The meme coin, Shiba Inu, made a remarkable, bullish rally last year, and its community, popularly known as the "Shiba Army", was calling for $1.
However, the community was given facts from market analysts who stated that Shiba Inu could not reach $0.1, let alone $1, because of the token's dynamics.
When Shiba Inu was created, it had a supply of quadrillion tokens. 50% of this supply was sent to Vitalik Buterin, who burned 90% of the tokens sent to him and donated the rest. The current circulating supply of SHIB tokens stands at around 549 trillion tokens.
If SHIB reaches $1 with the current circulating supply, it means that $549 trillion would be used to buy the SHIB tokens, and there isn't enough money in the world to make this possible. Even reaching $0.01 is also impossible because it would place it at a $54.9 trillion valuation, almost equivalent to the global money supply.
Bitcoin can reach the highs of over $60,000, and it could even attain $200,000 because of having a capped supply of 21 million tokens.
However, despite these statistics, the Shiba Army is still hopeful for $1, and for this to happen, what would it take? Before tackling this, let's look at the SHIB token's gains despite trillions of supply in the market.
Shiba Inu Made Notable Gains In 2021
The first major gain for Shiba Inu in 2021 was its rally to a record high of $0.000084 in September. The Shiba community has stated that these gains have been solely attributed to the efforts of the community and the development team.
Elon Musk was attributed to Dogecoin's bullish gains in May that allowed the token to reach a record high of $0.75. Elon Musk has once again shown support for DOGE, with each of his tweets contributing to notable gains for the meme token.
During SHIB's peak, Musk was asked whether he held any SHIB tokens, after which he responded with a strong "No." Musk is known for having a strong influence on the crypto community, but his rejection of SHIB did not affect the prices.
The community stated that this showed that SHIB was stronger than DOGE because it did not succumb to Musk's tweet.
Moreover, SHIB's gains at the end of last year stood at more than 23,100,000%, the largest gain in the crypto sector for last year.
For SHIB to reach $1 would mean staggering gains in the token. Having gained by over 23,000,000% happened, so a similar flip towards $1 is also possible. However, this would require strong community support and tweaks in the token's dynamics.
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Long-awaited Listing On Robinhood
Robinhood is one of the popular exchange platforms in the market. It is more popular with meme tokens because it was the center of the DOGE craze earlier in 2021.
The Majority of DOGE trades happened on Robinhood, and the popularity of this exchange with meme tokens has led the Shiba Inu community to call for a SHIB listing. In fact, it was speculations of this listing that contributed to SHIB's peak at $0.000086.
The Robinhood exchange is believed to do the same for SHIB and lead towards an influx of trading volumes causing a SHIB ATH.
Currently, there is a petition running on the Change.org platform for SHIB to be listed on the Robinhood. The petition has broken records on the Change.org platform as it garnered over 500,000 signatures in just a few weeks.
While the SHIB token is yet to be listed on Robinhood, it is still available on leading exchange platforms. It was recently listed on Kraken, which saw a 30% jump in prices just a day before the token slumped shortly after.
Therefore, a SHIB listing on Robinhood could contribute to short-term gains rather than long-term gains if there are no other developments within the Shiba Inu network.
So, what will it take for Shiba Inu to reach $1?
Check Out: Shiba Inu Price Predictions
SHIB Token Burning Is The Solution
Ethereum, the largest altcoin, is currently running a London hard fork upgrade that contains a token burning feature. The token burning mechanism aims at making Ether deflationary.
Currently, Ether has outperformed Bitcoin in terms of yearly gains. Since the token burning, Ether has shot to $4800.
The same way token burning has worked for Ether could also work for SHIB. Token burning currently stands as the most viable way SHIB can reach $1.
Token burning is when a portion of the token's supply is taken out of the market. Token burning can be done by sending tokens to a wallet address that no one has access to. Buterin did this when he burned 90% of the SHIB tokens sent to him. He sent them to a dead wallet address, which helped in SHIB's price appreciation.
Shiba Inu is already running a token-burning mechanism through ShibaSwap. However, this is not working well, as only a few million tokens are taken out of supply, which is a drop in the ocean, given the 549 trillion tokens in supply.
If the Shiba Inu development team can increase the volumes of tokens that they burn, this could drive prices. Ethereum has burned over $4.5B worth of Ether tokens since its burning mechanism was introduced.
The Shiba Inu development team is still quiet about increasing its token burning efforts. However, the SHIB community is running a token-burning process all by itself.
Some of the community initiatives regarding SHIB token burning include the SHIB Burn Playlist that burns tokens when holders stream a playlist from music streaming platforms. Another initiative is the Shiba Coffee Company that burns SHIB tokens when holders buy a bag of coffee.
While this is a good initiative by the community, the number of tokens being burned is insufficient to lower the Shiba Inu token supply by a significant amount.
The above factors create a strong case for SHIB to reach $1. Reaching $1 could be a groundbreaking record for the token, and if this is achieved in 2022, SHIB could be one of the most valuable tokens in the market.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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