Shiba Inu: Can It Reach $1 in 2023?

 Can Shiba Inu Reach $1 in 2023?

Numerous cryptocurrencies are dog-themed, with Dogecoin being the most obvious. Shiba Inu (SHIB -2.31%) is another example, and it has delivered a remarkable return of 529,000% from its beginning in August 2020, while facing a 90% fall over the past 14 months.

Shiba Inu is the 16th most valuable cryptocurrency as of this writing, having a market capitalization of slightly under $5 billion. The question is, what are the possibilities of Shiba Inu reaching $1 in 2023? Let us go more into the subject to determine the likelihood of this occurring.

History of the Shiba Inu

Shiba Inu's founders created SHIB to solve the faults of Dogecoin, a dog-themed meme token that came before it. SHIB was able to connect with numerous protocols by making it compatible with the broad Ethereum ecosystem. SHIB had an initial quantity of one quadrillion tokens at the time of its introduction, but after several burns, its current total circulation is 549 trillion tokens, according to coinmarketcap.com.

These figures may appear absurd, and that is because they are. Shiba Inu was designed to be readily available, as opposed to Bitcoin, which has a fixed supply cap of 21 million. This is why the token price of SHIB is so low. While the tokens are technically legitimate for payment, only roughly 500 vendors accept SHIB at the moment.

Shiba Inu became popular primarily as a result of the meme-stock mania that swept the markets in the spring of 2021. It has no genuine competitive advantage over the other 22,000 cryptocurrencies on the market, and retail investors were solely intrigued in the possibility of becoming wealthy rapidly. This is not a sound investment philosophy's foundation.

Shiba Inu is working on various significant efforts that may expand its utility, such as the Shibarium Layer2 scaling solution and a metaverse that uses non-fungible tokens. Yet, it begs the issue of why developers or users would select Shiba Inu when they could invest in Ethereum, which has a large variety of decentralized applications. Additionally, Shiba Inu has a longer track record and a larger development pipeline than Ethereum.

A price objective of $1 is unlikely.

In the evening of January 4, one SHIB token was worth $0.000008537. If SHIB reaches $1 by the end of 2023, it would represent a massive return of about 12,000,000%. Shiba Inu's market capitalization at $1 would reach a mind-boggling $549 trillion if the number of tokens issued remained constant.

Consider that Apple, the world's most valuable business, has a current market worth of $2 trillion, while the United States, the world's wealthiest country, has a total GDP of $23 trillion.

With these data, it appears that Shiba Inu will never hit $1, not just in 2023, but ever. In actuality, the maximum price reached by SHIB was slightly under $0.00009 in October 2021. It is a bad bet to expect it to reach $1. Those who were lucky enough to get in early and ride the wave achieved life-changing gains, but that is now history.

Investors would be wise to avoid this meme token entirely. Focus on the most popular digital assets, such as Bitcoin and Ethereum, if you wish to invest in them. Additionally, keep your exposure to these assets to no more than 1% of a well-diversified portfolio to keep your mind at ease.