- For Shiba Inu’s price to reach 1 cent, the Ether-based meme coin must have a market capitalization of $1 trillion from its current $4.86 billion, which makes the growth a significant uphill.
- The Shiba Inu meme coin has grown into a self-sustaining web3 ecosystem with a scaling solution and an active auto-burn mechanism to enable deflation over time.
Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has continued to attract crazy speculations despite the devastation of the 2022 crypto bear market. Having registered gains of more than 14 million percent during the 2021 crypto bull rally, SHIB has attracted tons of crypto investors hoping to ride it during the next bull market cycle. Furthermore, SHIB has more than 1.3 million non-zero addresses on the Ethereum network and many more on other chains that support that meme coin in wrapped versions.
Consequently, there is a high enthusiasm for the SHIB token to reach 1 cent during the coming bull cycles. Nonetheless, the road to 1 cent for SHIB is a huge task for the meme coin considering the diminishing returns for the instrument and the high competition from other digital assets in the same category like PEPE, FLOKI, DOGE, and MEME, among many others.
Why Shiba Inu is Well Positioned to 1 Cent
The Shiba Inu core developers led by Shytoshi Kusama have been actively deconstructing internet FUDs (fear, uncertainty, and doubt) in the past year in a bid to ensure a strong and informed online community. Currently, the Shiba Inu community boasts of the leading web3 development through the Shibarium layer two (L2) scaling solution.
According to market aggregate data provided through Defillama, the Shibarium network has about $681k in total value locked (TVL) with the most DeFi applications including DEXes like MARSWAP, ChewySwap, and DogSwap. Worth noting that the Shibarium network enables transactions of the Shiba Inu ecosystem extremely fast, highly secure, and at low prices. Consequently, the web3 developers seeking to build Dapps like Gamify that require extremely high through at low prices can easily scale.
The Shibarium network also has the role of making SHIB a deflationary token through the heightened auto-burn mechanism. For instance, the Shiba Inu burn rate in the past 24 hours was about 17,270 percent according to on-chain data provided through Shibburn. As a result, a total of 410,663,068,699,617 SHIB tokens have been burned since the initial supply, with 8,894,685,787,074 tokens staked, hence leaving about 8,894,685,787,074 tokens in circulating supply.
SHIB Price Action
From a technical perspective, SHIB price has been consolidating in a macro descending triangle for the past two years. A bullish breakout from the current prices to its all-time high (ATH) is a descent of 10X. The road to 1 cent for SHIB must include strong holders to avoid the buy-and-dump narrative, which is prevalent in the meme coin network. On the weekly time frame, the SHIB price must consistently close above the 50 Moving Average (MA) in order to invalidate the macro falling trend.
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