Shiba Inu is known as one of the most popular meme coins in the crypto industry. In contrast, SHIB price continues to consolidate below $0.00002 since last May. Despite this stagnation on the price side, many market participants believe that SHIB could eventually reach $0.01. So is this goal impossible to achieve?
Many factors must be taken into account to determine the target price of a cryptocurrency. First of all, it is necessary to consider factors such as general trends in the cryptocurrency market, investors’ sentiments, technical analysis, fundamental analysis, development and adoption rates. These are just a few of the many factors that determine the price of a cryptocurrency.
However, the development of Shibarium, the highly anticipated layer 2 network for the Shiba Inu ecosystem, could act as support for SHIB’s $0.01 target. So how?
SHIB and Shibarium
For SHIB to reach $0.01 above its current price, it would need to increase by around 1,000 times. While this represents a huge rise, it’s worth noting that the Shiba Inu has increased 3,743x in 2021.
While a 1,000-fold increase isn’t impossible for SHIB, its supply would need to be drastically reduced for this to happen. The 3,743x increase in 2021 was triggered in large part by Vitalik Buterin’s burning of 410 trillion SHIB.
Despite ongoing burning activities, the circulating supply of Shiba Inu is well over 574 trillion. We can say that the SHIB team needs a large combustion platform to reduce this huge supply. That’s what Shibarium promises to do. Shibarium is expected to support two topics for SHIB: burns and usage.
The main purpose of launching Shibarium is to be a special burn portal that will destroy the SHIB on every transaction within the network. However, many leading organizations have declared their support for Shibarium. Thousands of projects have expressed interest in building on the Shibarium.
The number of tokens Shibarium can burn will depend on its adoption. As more crypto projects adopt the protocol, more tokens will be burned through the protocol. Projects that process tons of Shibarium and Shibarium can burn trillions of SHIB. These burns could eventually trigger a price spike like in 2021, ultimately providing support for the journey to $0.01.
These reasons position Shibarium as the primary game-changing factor, but other projects such as ShibaSwap 2.0 and SHIB: The Metaverse may also provide complementary support for the price target.
Conclusion
It is not impossible for SHIB to reach $0.01. However, everyone involved in the crypto project, including community members, must work with great dedication towards this goal.
First, most of its supply must be destroyed for SHIB to reach $0.01. This is a strategy that aims to attract investors by increasing the price of the cryptocurrency. However, serious work is required for this strategy.
Secondly, ensuring mainstream adoption of SHIB in the payments industry is also important to raise its price. The greater acceptance and use of SHIB in the payment industry may lead to increased demand and therefore higher price. This may cause new investors to show interest in SHIB.
You can follow the current price action here.
Source : the crypto basic