Can Shiba Inu reach $0.001 in 2024?

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Over the long term, the stock market is a seemingly unparalleled creator of wealth. The S&P500 has offered an average annual total return, including dividends paid, of around 10% for decades. But when examined over a much shorter period, cryptocurrencies have been making the rounds on Wall Street.

The real potential of blockchain-based innovation helped propel the aggregate value of all digital currencies from a coronavirus low of $141 billion to nearly $1.06 trillion, at the start of this week. For those of you keeping the score at home, that’s a staggering 649% increase in value in just 30 months.

But for very popular cryptocurrency even shiba inus (SHIB -3.09%)a 649% gain would simply be a good day at the office.

Image source: Getty Images.

2021 Shiba Inu Performance May Never Be Duplicated

What Shiba Inu was able to do in 2021 was nothing short of historic. According to data from CoinMarketCap.com, investors had the opportunity to purchase SHIB tokens for just 0.000000000073 at the stroke of midnight on January 1, 2021. Less than 10 months later, on October 27, Shiba Inu would reach its record level. intraday maximum of $0.00008841 per coin.

For those of you keeping the score at home, we’re talking about a trough-to-peak gain of over 121,000,000% in less than 10 months. This means that investing $1 at the stroke of midnight on January 1, 2021 would have made an investor a millionaire by October 27.

Even though Shiba Inu would lose a significant percentage of his value in the last two months of the year, he ultimately made a gain of around 46,000,000% in 2021. To put into context how incredible this performance is, the benchmark S&P 500 has gained 30,209%, including dividends paid, over the 57-year period between 1965 and 2021. Shibu Inu tokens have returned more than 1,500 times the 57-year total return of the S&P 500 in a single year.

But SHIB holders believe even better days are ahead. While Shiba Inu has effectively doubled in value from its mid-June 2022 lows, the chatter again builds on social media message boards that the psychological price target of $0.001 may be in play. – maybe in the next couple of years.

What would need to happen for SHIB tokens to skyrocket nearly 7,800% by 2024? Let’s take a closer look.

What would have to happen for Shiba Inu to reach $0.001?

For Shiba Inu to deliver some form of repeat performance through 2021, three things would need to happen.

Arguably the biggest catalyst for SHIB is the planned launch of Shibarium, an in-house developed Layer 2 blockchain specifically designed to lower transaction costs. Not only would lower transaction costs make SHIB more attractive from a merchant perspective, it would, more importantly, fuel non-fungible token (NFT) based NFT gaming and market transactions. Shiba Inu’s metaverse ambitions depend on reducing transaction costs.

Despite rumors that Shibarium will debut sometime in Q3, the Shiba Inu developers noted that no definitive timeline has been set for a public beta launch.

The second basic catalyst that would be needed to generate nearly 7,800% efficiency by 2024 is the burning of parts (and lots of them!). Coin burning is a lot like a stock buyback program, but for cryptocurrencies.

When a publicly traded company buys back its own shares, it makes each remaining share that much more valuable. The same idea applies to burning coins. By sending tokens to dead (i.e. unreachable) blockchain addresses, the remaining supply of tokens is reduced.

Last year, Ethereum founder Vitalik Buterin played a key role in increasing Shiba Inu racing. After receiving about half of SHIB’s 1 quadrillion token supply, Buterin sent over 410 trillion tokens to a dead blockchain address. With a single click, Buterin reduced SHIB’s exceptional parts supply by 41%.

Last but not least, Shiba Inu will need even more social media buzz than it had during its monumental run in 2021. According to Etherscan, there are 1.22 million individual wallets containing SHIB tokens. , as of September 12, 2022. To reach $0.001, this ultra-popular meme coin would need these folks in full force to create buzz on social media.

A visibly worried person looking at a rapidly rising then plummeting cryptocurrency chart displayed on a tablet.

Image source: Getty Images.

This Is Why Shiba Inu Barks And Doesn’t Bite

Now that we’ve taken a closer look at what catalysts would be needed to send Shiba Inu significantly higher, let’s address the obvious question: is $0.001 a realistic goal by 2024?

Although SHIB has already done what was believed to be impossible, I see no way to reach $0.001 within the next two years. In reality, SHIB seems to bark everything and not bite.

One of the biggest issues with the chatter surrounding SHIB hitting $0.001 is that it would imply a valuation of over $500 billion. Only a few listed companies have higher market capitalizations. However, these companies generate tens of billions of dollars in annual operating cash flow and have been at the forefront of innovation. None of these statements would apply to Shiba Inu.

To capitalize on this point, Shiba Inu offers no competitive advantage or real differentiation in the highly competitive cryptocurrency space. As an ERC-20 token built on the Ethereum network, Shiba Inu is nothing more than a trendy payment coin – and there’s nothing particularly special about using digital currency as a mode of payment. .

What might be even more shocking is how little use SHIB sees as a real-world form of payment. According to online business directory Cryptwerk, only around 500 mostly obscure global merchants are willing to accept SHIB, excluding crypto services. Moreover, this figure has not changed for more than three months, which signifies the reluctance of merchants to accept a digital token that is already down 91% from its all-time high.

To make matters worse, virtually all payout coins that generated life-changing gains in a short period of time lost nearly all of their value within two years of their eventual peak. In other words, even though SHIB has lost up to 91% of its value since its peak on October 27, 2021, there is nothing stopping it from returning to 99%+.

Finally, with approximately 549 trillion SHIB tokens still in circulation, according to CoinMarketCap.com, there does not appear to be enough coin consumption momentum to make a justifiable difference in the price per Shiba Inu token.

The psychological goal of $0.001 may be fun to talk about on social media, but it’s not a realistic expectation for a project with no competitive advantages and a lot to prove.


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