Shiba Inu, is known for having one of the strongest communities in the cryptocurrency industry. Meme coin, which has come a long way since its launch in August 2020, is looking to increase its strength. The price of the asset increased by millions of percent and rose to 12th place in terms of market capitalization.
SHIBreached an all-time high of $0.00008616 in October 2021. However, the asset’s price has fallen by more than 70% since then. Despite this, SHIB fans and investors remain determined to achieve higher price targets. The target price for many SHIB investors is $0.001. Now, let’s look at how the popular dog-themed cryptocurrency could reach this price point.
The Biggest Obstacle to the Shiba Inu Price: Supply
Shiba Inu priceOne of the biggest hurdles is the huge amount of supply. There are currently approximately 589 trillion SHIB tokens in circulation. If the price of each coin reaches $0.001, the market value of the project will reach unrealistic levels. Therefore, the SHIB team needs to reduce the token supply before targeting higher prices. There are reports that the team is working on a new burning mechanism that is said to burn trillions of tokens annually. If the team can significantly reduce the supply of SHIB, the likelihood of an increase in the price of the asset increases.
The second factor that will enable SHIB to reach $0.001 is improvements on Shibarium, the project’s layer-2 network. If more applications are developed on Shibarium, the demand for SHIB will increase, which will bring about an increase in price.
The third development that will allow Shiba Inu to reach $0.001 is a generally positive market environment. SHIB reached its highest level in 2021, during the strongest uptrend of the crypto market. At that time, many of the top assets had reached all-time highs. A similar market situation will greatly help SHIB achieve its price targets.
