Shiba Inu’s Potential to Reach $1 and Burn Rate Surge Fuels Optimism in the Crypto Market
Shiba Inu (SHIB), the second-largest meme cryptocurrency, is still getting a lot of attention in the crypto world. Recently its price has remained steady at $0.00002812, up 163% from its lows in August. With more optimism from crypto fans and more tokens being burned, many are wondering: can Shiba Inu ever reach $1?
Understanding Token Burns and Their Impact
Token burning happens when coins are permanently taken out of circulation by sending them to a wallet that no one can access. This reduces the total number of coins available, which can make them scarcer and more valuable over time. In the Shiba Inu ecosystem, token burning is mainly done through platforms like Shibarium and ShibaSwap.
As of now, Shiba Inu’s 24-hour burn rate has surged by 425%, burning 71,122,860 SHIB tokens within a single day. Over 410 trillion Shiba Inu tokens have been burned so far, leaving 584 trillion still in circulation. Even with such a large number of tokens removed, the remaining supply is still very high, making it hard to achieve a big price increase.
Bullish Catalysts: Shibarium and Ecosystem Growth
Shibarium, Shiba Inu’s Layer-2 solution, helps burn tokens. The platform has processed over 645 million transactions, has more than 2.01 million addresses, and creates new blocks in about 20.9 seconds. Some of the fees on Shibarium are turned into SHIB tokens and burned, which helps lower the total supply.
The SHIB price has been rising slowly but steadily since it dropped to $0.00001095 in August. On November 4, a positive sign appeared when the 200-day moving average crossed above the 50-day moving average, forming a bullish golden cross pattern. Additionally, a cup-and-handle pattern is evident on the daily chart, a classic indicator of a bullish continuation trend.
The depth of the cup is approximately 67%. If the price goes up, analysts believe it could reach $0.00005470. However, for it to hit $1, the price would need to rise by more than 3 million percent, which makes this unlikely under current conditions.
Challenges in Reaching $1
While token burns and ecosystem growth are promising, significant barriers remain:
Massive Circulating Supply: With 584 trillion tokens still in circulation, even substantial burns are unlikely to reduce the supply to a level that supports a $1 price.
Market Capitalization Requirements: At $1 per token, Shiba Inu’s market cap would need to exceed $584 trillion, a figure far surpassing the total value of global financial markets.
Utility and Adoption: While Shibarium and other ecosystem developments enhance SHIB’s utility, broader adoption across industries would be necessary to support such a dramatic price increase.
Shiba Inu Price Prediction: Realistic Price Targets
Although reaching $1 is unlikely, Shiba Inu’s short-term outlook is still good. Analysts think that if the price goes above $0.00003475, a key level, SHIB could rise to the important $0.000040 mark. This is seen as a more realistic target, supported by positive market sentiment and technical signals.
Shiba Inu’s journey to $1 is a captivating narrative but one rooted more in speculation than practicality. Token burns, ecosystem growth, and reduced exchange supply provide a solid foundation for price appreciation, but the road to $1 faces insurmountable challenges under current conditions.
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Investors should instead focus on realistic targets, such as $0.000040, and the continued development of Shiba Inu’s ecosystem. As the crypto market evolves, Shiba Inu remains a compelling asset for traders and long-term holders alike, symbolizing the potential and volatility of the cryptocurrency landscape.
Also Read: Dogecoin Price Drop: Why Closing Below $0.465 Could Signal a Stronger Future
