The future of Shiba Inu: How a high market capitalization makes the prospects for an increase to $ 1 more difficult

The future of Shiba Inu: How a high market capitalization makes the prospects for an increase to $ 1 more difficult

Shiba Inus fight with the mass acceptance

cryptocurrencies are difficult to be recognized as a daily means of payment. This also applies to Shiba Inu (Shib 1.16 %), which gained popularity in 2021 with an amazing increase of 43,800,000 %. In 2022, however, he had to accept a burglary by 76 % and is currently traded at $ 0.000008. Although the Shiba Inu community hopes for a comeback, it faces several challenges. In order to improve the perspectives of the token, developers work on Shibarium, a Layer 2 blockchain solution that is intended to enable simpler and cheaper transactions. In addition, the community explores other options such as a Shiba inu-focused meta persona and a digital card game called Shiba Eternity to attract more users. But even with these initiatives there is another remarkable obstacle that stands in the way of a new increase.

Shiba Inus 589-Billion dollar obstacle

With an incredible 589.3 trillion token in circulation, Shiba Inu faces a monumental mathematical problem. With a current price of $ 0.000008 per token, the entire market capitalization is $ 4.7 billion. If the price rose to $ 1 per token, market capitalization would achieve astronomical $ 589.3 trillion. For comparison: Apple, the largest company in the world, is only rated $ 3 trillion. The entire market capitalization of all companies in the S&P 500 is only $ 37 trillion. In view of these figures, it becomes clear that the current state of Shiba Inu makes it impossible that the token will reach $ 1.

To counteract this, the community took measures to burn tokens and permanently pull out of circulation. Several initiatives such as a music playlist, a search engine and a coffee dealer contribute sales and advertising revenue to token burning. But even if enough tokens are burned to reduce the offer, this would not significantly change the underlying value of the investors. They would simply have a lower number of tokens at a higher price without changing their overall position significantly. The combustion rate is currently about 1.2 million tokens in the last 24 hours. In view of this rate, it would take astonishing 1.3 million years to burn the required 589.29 trillion tokens.

Taking these factors into account, it becomes clear that Shiba Inu is facing insurmountable obstacles on his way to reaching $ 1. The probability that this will happen in the foreseeable future is extremely low. However, the Shiba Inu Community remains confident and works to find new ways to promote the mass acceptance of the token and overcome its volatility. In the long term, Shibarium and other initiatives could help strengthen the trust of investors and to make Shiba Inu using Shiba more attractive for daily transactions. Nevertheless, it remains to be seen how the future of the token will develop.