Will Shiba Inu Reach 1 Cent? SHIB Price Prediction | CoinCodex (2024)

It seems extremely difficult for Shiba Inu to reach 1 cent, primarily because of its immense circulating supply of over 589trillion tokens. At 1 cent per SHIB, the meme currency would command a market cap of$5.89 trillion, over two times the current market cap of all digital assets combined.

However, recent developments – like the Shibarium layer 2 solution – could drastically reduce the circulating supply and potentially help the Shiba Inu coin reach 1 cent in the long term.

In this article, we’ll be tackling the question of whether it’s possible for SHIB to hit a penny. Before we get started, however, let’s take a brief look at the story of the Shiba Inu project and its journey toward the top of the crypto markets.

Shiba Inu: The meme coin that went from nothing to billions of dollars

Shiba Inu was launched in August 2020 without much fanfare. The token was presented as an alternative to Dogecoinand was sometimes referred to as “the Dogecoin killer.” In contrast to Dogecoin, which has its own blockchain, SHIB is basedon the Ethereum blockchain, which gives it a lot more potential use cases, as the token can easily be deployed in decentralized finance (DeFi)applications.

The creator of Shiba Inu is known under the pseudonym Ryoshi and distanced himself from the project in 2022. Shytoshi Kusama, the lead developer, is another important figure in the Shiba Inu project.

SHIB was largely unknown for about half a year after it was created. Before 2021, its trading volume was extremely low, less than $1,000 on most days. At the time, only users with extreme dedication, plenty of luck, and know-how for how to find new meme coins earlywere able to snatch SHIB at extremely low prices in the early days.Ironically, the catalyst that brought Shiba Inu to the limelight was Dogecoin, which Shiba Inu was meant to replace. Dogecoin’s massive price increase in the early part of 2021 led crypto speculators to look for “the next Dogecoin,” and the market settled on Shiba Inu as the best candidate, crowning it as one of the best meme coins.

Will Shiba Inu reach 1 cent?

It would be extremely difficult for Shiba Inu to reach 1 cent. Even during SHIB’s all-time high in October 2021, when the token was trading at $0.0000881, SHIB would have needed to increase in price by 113x to hit $0.01.

While SHIB has seen massive price increases in the past, the chance of hitting large multiples becomes smaller as the asset's market cap grows. For example, it would not be outlandish to say that a cryptocurrency with a market cap of $10 million could potentially increase 100x in price over a long enough time period.

At its all-time high, SHIB had a market capitalization of $43 billion. At that kind of size, even a 2x price increase would have required a massive amount of capital to flow into SHIB. Achieving a 113x multiple from a $43 billion market cap asset would be next to impossible.

For more context on why it’s so unlikely anything could boost SHIB to a penny (at the current circulating supply), let’s take the example of Bitcoin. At its absolute peak, BTC had a market capitalization of $1.31trillion. If SHIB were to reach $0.01, it would have a market capitalization of approximately $5.89 trillion, which would be more than 4x larger than Bitcoin at its very peak.

At the time of writing, Microsoftis the world’s most valuable company, with a market capitalization of about $3.07 trillion. Apple is in second place with a market cap of $2.67 trillion. At a price of $0.01, SHIB would have a biggermarket capitalization as the two largest companies in the world combined.

Can SHIB reach 1 cent? Examining the “cheap coin” fallacy

So, if the market cap of Shiba Inu would be so outlandish if SHIB reached $1 or even $0.01, why do we see people repeating these price targets so often on social media platforms? The reason is what we like to call the “cheap coin” fallacy.

Most meme coins have a very large circulating supply, which results in a low price per unit. Sometimes, we refer to such cryptocurrencies as penny cryptos. This was already a feature of Dogecoin, which launched back in 2013, but the newer generation of meme coins like Shiba Inu has taken this concept to the extreme.

Dogecoin’s current supply is 143billion coins, with about 5 billion new coins being added per year. Shiba Inu, on the other hand, has a supply of 589 trillion tokens. As a result, the price per token is extremely low—at the time of writing, 1 SHIB is only worth $0.00002175.At a surface level, this makes SHIB seem approachable and cheap to new investors in crypto. For example, some people who are looking to invest in crypto for the first time avoid Bitcoin because 1 BTC is “too expensive,” even though it’s possible to buy as small a fraction of Bitcoin as you’d like.

When there are viral social media campaigns urging people to buy Shiba Inu in order to “get SHIB to a penny” or “get SHIB to $1”, some people don’t stop to think about what that would actually entail because $0.01 and $1 seem like small numbers. Instead, they focus on the low dollar denomination and cheer for Shiba Inu’s 1-cent milestone.

In reality, you shouldn’t be looking at a coin or token’s price per unit when trying to see if it is undervalued or overvalued. Instead, you should be considering the coin or token’s market capitalization, as that’s what will actually allow you to get an idea of how it compares to other crypto assets in terms of size.

However, the fact remains that some people are drawn to coins that have a low price per unit due to the “cheap coin” fallacy. If you’re a speculator, you can sometimes leverage this to your advantage.

Can SHIB still go up?

Even though we’ve hopefully demonstrated that you shouldn’t expect SHIB to ever reach 1 cent, that doesn’t mean that there isn’t any potential upside for Shiba Inu. The token is trading 90% down from its all-time high price, so people buying SHIB at current price levels are truly “buying the dip.”

The Shiba Inu project is quite well established, as it has a large base of token holders and listings on major cryptocurrency exchanges. So, if there is a cryptocurrency bull run again and demand for Shiba Inu rises, interested buyers will have no problems acquiring the token.

From the fundamental side of things, the Shiba Inu team is working on several products that are geared toward making SHIB a more attractive token to hold. The most notable of these products is Shibarium, a layer 2 scaling platform for Ethereum that went live in August 2023.

According to Shiba Inu developers, Shibarium providescheap and fast token transactions for metaverse and gaming use cases. Shibarium has also incorporated a burning mechanism in which SHIB tokens are burned with each transaction.

#SHIBARMY is driving #Shibarium to new heights. This rollercoaster truly has only one direction: UP! ? pic.twitter.com/c0pNpxHgf5

— Shib (@Shibtoken) January 22, 2024

Other projects being worked on by the Shiba Inu team include the ShibaSwap decentralized exchange, the Shiboshis NFT collection, and SHIB: The Metaverse.

If these products become widely adopted, they could serve as a catalyst for the price of SHIB to move higher and make it one of the best cryptos to buy. However, SHIB is still mostly perceived as a speculative meme coin, so it will likely take favorable conditions in the broader crypto market in order for SHIB to see substantial gains.

Of course, there’s no guarantee that a coin will ever reach its previous all-time high again. This is especially true for Shiba Inu, which has only been around since the summer of 2020 and, therefore, doesn’t have a long price history that would help us understand how SHIB tends to behave across crypto market cycles.

Shiba Inu price prediction: 1 cent seems to be out of the question for 2024 &2025

According to our algorithmically-generated Shiba Inu coin price prediction, the price of the meme currency will see a modest increase over the next couple of weeks, with SHIB’s price growing +230% to $0.00007202 by the first half of May.

After the short-term positive movementover the next month, Shiba Inu is expected to reach $0.0001010 by June 2024 (a +359% increase compared to its current price).

On a longer time frame, SHIB is forecasted to slowly retrace after the 2024 peak and drop in the sub $0.0000300 zone by the end of 2025.

It is worth noting that the price prediction for Shiba Inu is based on the state of technical indicators in April 2024, which means that it could considerably change in the future. However, we've hopefully demonstrated that it's unreasonable to expect it to reach 1 cent, let alone expect it to be the next crypto to hit $1 at the current supply.

So, can Shiba Inu reach 1 cent?

If you’re making a Shiba Inu price prediction, the 1-cent price level is more or less out of the question. As we’ve shown, such a price level would imply a completely unrealistic market capitalization of $5.89 trillion for Shiba Inu. Of course, Shiba Inu going to 1 dollar is an even more unrealistic scenario.

However, this doesn’t mean that it’s impossible for the SHIB price to grow. If the cryptocurrency market enters another bull run, SHIB could very well be one of the meme coins to explode. The Shiba Inu team is working on key products like Shibarium, and SHIB is positioned well thanks to numerous crypto exchange listings.

If you are interested in longer-term price projections, check out our Shiba Inu price prediction for 2040 and 2050.

For a broader overview of the meme coin landscape and cryptos that hold the most promise in 2024, check out the video below.