Despite optimistic outlooks and forecasts for Shiba Inu (SHIB) to reach prices of $0.1 and $0.01, the meme coin is finding it challenging to keep its value steady in the unpredictable market.
This situation has made SHIB holders lose confidence in Shiba Inu, and it’s also discouraging potential investors. People are hesitant to invest in a project when there’s no certainty of getting their money back.
Despite facing challenges, the Shiba Inu team is actively working on various developments to improve its ecosystem and market outlook. One of these developments is Shibarium, a layer-2 scaling solution network.
People were hopeful that it could help SHIB reach $0.1 and $0.01 due to its features, like reducing the number of SHIB tokens in circulation. Initially, Shibarium had some technical issues at launch but was successfully relaunched in late August.
In just a few days after its second release, Shibarium burned 5.7 billion SHIB tokens in August. It remains to be seen how Shibarium will impact SHIB’s token burn rate by the end of September.
However, there are questions about why SHIB has struggled to increase its price and remove some of the zeros in its value. Currently, SHIB is trading at $0.00000730. Reaching $0.01 or $0.1 would mean eliminating 4 or 5 zeros from its price, respectively.
SHIB’s High Circulating Supply a Major Obstacle
The major problem for Shiba Inu is its huge supply of 589 trillion tokens. To have a chance of reaching prices like $0.1 or $0.01, they need to significantly reduce this supply. Currently, Shiba Inu’s market cap is around $4.3 billion according to CoinGecko.
If SHIB is to reach those high prices, they must reduce the number of tokens in circulation by a large amount. Otherwise, it would mean that SHIB is expected to be worth more than massive entities like Apple and the entire United States, which is highly unlikely.
Current Market Sentiment and Outlook
People in the crypto market seem worried and are selling their assets because they’re afraid of losing more money. Until this situation changes or improves, cryptocurrencies like Shiba Inu, which have a huge supply, might continue to have a tough time in the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News