22 May 2024
Crypto analyst Oscar Ramos has outlined why he doesn’t believe the Shiba Inu price can go above $0.01 this cycle. He made this statement while alluding to the possibility of the meme coin reaching $0.5 at some point in the future.
Why Shiba Inu Can’t Go Above $0.01
Ramos mentioned in an X (formerly Twitter) post that Shiba Inu can’t go above $0.01 because of its current supply of over 589 trillion, according to data from CoinMarketCap. The crypto analyst made this remark while sharing a prediction chart from the price prediction website Telegaon, which showed that Shiba Inu could reach $0.5 in 2040.
Indeed, Shiba Inu’s circulating supply significantly impacts its price, which is why the Shiba Inu team has made a conscious effort to reduce the amount of SHIB tokens in circulation through regular token burns. Shiba Inu’s burn tracker had previously noted that Shiba Inu’s circulating supply would need to be just over 85 billion for its price to even reach $0.01, as Ramos predicts.
That means almost 80% of Shiba Inu’s circulating supply still needs to be burned for the meme coin to attain Ramos’ price target. Crypto YouTuber Jeff had previously suggested that it was almost impossible for Shiba Inu to burn that much of its circulating supply, stating that it would take over 1 million years for Shiba Inu’s circulating supply to reduce to 100 billion tokens.
However, there is no doubt that the Shiba Inu team has still made great efforts to reduce the meme coin’s circulating supply. Over 76 billion SHIB tokens were burned in 2023, while 83 billion were burned the previous year. Seeing how Shiba Inu’s price has increased since last year, these efforts are paying off.
While burning 80% of Shiba Inu’s circulating supply still seems like a far-fetched goal, SHIB token burns are expected to increase exponentially, especially thanks to innovations like layer-2 network Shibarium, which uses some of the transaction fees earned for SHIB burns. Therefore, the number of token burns carried out will increase as Shibarium enjoys more adoption.
SHIB Can At Least Rise To $0.011
Crypto analyst Ali Martinez had previously predicted that Shiba Inu could make a historic run from its current price level and rise to as high as $0.011. Other crypto analysts have also given bullish price predictions for Shiba Inu, although not as bullish as Martinez’s.
Crypto analyst Armando Pantoja predicted that Shiba Inu could reach $0.001 and even claimed this would happen after the Bitcoin halving. Ramos has also given his bullish prediction for SHIB in this bull run, as he predicts that the meme coin can shed another zero from its current price and rise to $0.0001.
At the time of writing, Shiba Inu is trading at around $0.00002603, up over 2% in the last 24 hours, according to data from CoinMarketCap.