Shiba Inu currently has a market capitalization of roughly $4.7 billion, and it ranks as the 17th-largest cryptocurrency by overall valuation. Despite falling roughly 91% from the lifetime high that it reached in October 2021, the token is still up more than 14,200,000% from the price it debuted at. While the popular meme-themed cryptocurrency has seen volatile trading, it's also made fortunes for those lucky enough to have bought and sold at opportune times.
Given that Shiba Inu currently trades down massively from its high and has already demonstrated explosive potential, it's possible that the cryptocurrency could go on another powerful run. Some have even speculated that it could eventually hit a price of $1 per token, potentially turning a $100 investment in the token today into more than $12 million. Could this really happen?
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No bones about it
In order to reach a price of $1 per token, Shiba Inu would need to rally more than 12,400,000% from its current token price. While there are potential catalysts that could trigger a solid bullish run for the meme cryptocurrency, hitting that ambitious target price is virtually impossible.
That's because relative growth is harder to deliver the larger something becomes. Comparatively small increases in adoption or other catalysts can have a much bigger impact on assets or equities that are starting at much smaller valuation levels. This dynamic partially explains why Shiba Inu was able to deliver such explosive gains across 2021's trading.
The fact that Shiba Inu has risen more than 14,200,000% from its initial price makes it exceedingly unlikely that it can deliver that kind of increase from current valuation levels. Despite the jump needed to reach $1 being smaller in terms of its pure percentage-point increase than what the token has already accomplished, that kind of performance is almost certainly out of reach.
Even if Shiba Inu's circulating coin count were reduced from 589 trillion to 100 trillion through burning -- permanently removing tokens from circulation by sending them to a special address -- it would have a market capitalization of $100 trillion at a price of $1 per coin. For perspective, the total combined gross domestic product of every economy in the world was $101.6 trillion in 2022.
In simple terms, holding out hope that Shiba Inu will hit $1 per token is barking up the wrong tree. But it is still possible that the cryptocurrency will see its price climb above current levels.
What could send Shiba Inu higher?
Even with the price of the coin falling over the last couple years, Shiba Inu still has a large and enthusiastic community of supporters behind it. The fact that its token's use case has primarily been limited to being a payment mechanism or speculative asset didn't stop SHIB from posting spectacular gains.
It may climb significantly above its current valuation if people bet on the coin amid a broader run-up for cryptocurrency valuations. The team behind Shiba Inu has also been making moves to build a broader ecosystem surrounding the token and expand its features and capabilities.
The organization is expected to launch Shibarium, its Layer-2 solution, in the second half of this year. Shibarium will serve as a secondary network that connects Shiba Inu to the underlying Ethereum network in a more efficient way, in order to improve transaction speeds and lower transaction costs for the Shiba Inu token, potentially opening the door for increased adoption and improved features for the token ecosystem.
The Shiba Inu organization is also gearing up to launch a metaverse called "SHIB: The Metaverse." It's possible that the metaverse could promote its namesake cryptocurrency or otherwise create conditions that work to send the token's price higher. Users will need to burn Shiba Inu tokens to name the plots of land, which will reduce the total circulating supply count and potentially drive pricing increases.
Would it be smart to buy Shiba Inu?
Despite Shiba Inu's token price having fallen precipitously from its high, the cryptocurrency remains a very high-risk investment. The meme coin may go on to see more strong rallies at some point, but investors should keep in mind that they could lose a substantial portion of any money that they put into the cryptocurrency.
There's no denying that Shiba Inu has put up stellar returns since its inception, and it has demonstrated some staying power in the crypto space. That being said, I generally think that Bitcoin or cryptocurrencies that are tied to useful applications have better chances of long-term success. A gamble on the Shiba Inu coin could pay off in the long run, but I'd be surprised if this dog ever wins "best in show" again.
