Here’s the Only Reason Shiba Inu Cannot Surge to $0.01 or $0.001

Shiba Inu might never reach the much anticipated $0.01 or $0.001 price thresholds due to its substantial circulating supply sitting above 589 trillion tokens.

The crypto market features multiple opportunities that could allow investors transform modest investments into fortunes. Shiba Inu is one of the assets that presented this opportunity in the past, yielding $1 million with a meager capital of $12 in 2021.

Analysts Set $0.001 and $0.01 Targets

SHIB was able to achieve this feat amid the dramatic surge to the all-time high of $0.00008845 in October 2021. However, following this spike, Shiba Inu recorded a massive correction that saw it give up most of the gains. Nonetheless, with a recovery campaign on the horizon, market watchers and investors expect a repetition of the 2021 uptrend.

Shiba Inu recently spiked 370% to $0.000045, but witnessed a retracement. Now struggling to hold above pivotal support levels, SHIB looks to maintain some of these early gains. As investors anticipate an imminent price surge, analysts have set multiple targets, with the $0.001 and $0.01 featuring prominently.

Notable Bitcoin investor and analyst Armando Pantoja projected two months back that Shiba Inu is capable of reaching $0.001 this or next year. Meanwhile, community figure Lola argued that SHIB has the potential to clinch the $0.01 level.

Shiba Inu Circulating Supply Presents a Roadblock

Nonetheless, these goals might be too ambitious for Shiba Inu due to a simple roadblock. SHIB’s extensive circulating supply poses a problem to such targets. Due to the massive supply, Shiba Inu would either need an unimaginable volume of capital inflow to reach the goals or a massive increase in burn rates.

For context, if SHIB ever clinches the $0.001 price level, its market cap would skyrocket from the current $13 billion figure to $589 billion, making it the second largest crypto asset in the market. At this valuation, Shiba Inu would surpass Ethereum, which currently boasts a market cap of $426 billion.

Meanwhile, at the audacious $0.01 price territory, SHIB’s market valuation would spike above $5.89 trillion. Such market cap would make Shiba Inu larger than Bitcoin (BTC) by over 4.5 times. In addition, this valuation is larger than those of Apple ($3.27 trillion) and Microsoft ($3.28 trillion).

The implication of price surges to $0.001 and $0.01 on Shiba Inu’s market cap makes it highly difficult for the canine-themed asset to reach these targets. As a result, a massive reduction in its circulating supply could be necessary to allow for such a price increase.

However, at the current burn rate, incinerating any significant portion of Shiba Inu’s circulating supply might take years. As a result, the community have turned their attention to layer-2 network Shibarium, which burns SHIB with a portion of its base gas fees. Notably, the Shibarium team is looking to pivot the burn mechanism to an automated one.

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