Will Shiba Inu Price Hit $0.01 if SHIB’s Supply is Halved to 294 Trillion Tokens?

Shiba Inu (SHIB) boasts a staggering supply of 589 trillion tokens, a number that has weighed on the meme coin’s price growth despite periodic burns. The Shiba Inu community continues to burn SHIB tokens daily, but the impact on the price has been limited due to the massive supply. However, if the Shiba Inu burn rate increases dramatically and slashes the supply by half to around 294 trillion tokens, could this spark a Shiba Inu price rally to $0.01? 

Will Shiba Inu Price Hit $0.01 if Supply is Halved? 

A reduction of SHIB’s supply by 50% will bode well for Shiba Inu price if the demand also increases. This is because as buyers compete for fewer tokens, it causes an equilibrium shift that pushes the price up. However, even as the supply reduces, a rally to $0.01 in the near term remains unlikely because of several factors.

Firstly, if Shiba Inu price were to reach $0.01 with a total supply of 294 trillion tokens, it would place its market capitalization at $2.94 trillion. This is close to the total crypto market cap today and exceeds the Gross Domestic Product (GDP) of many countries. For a meme coin like SHIB, which has limited utility, achieving such a valuation seems unlikely under current market conditions. Grok 3 agrees with this analogy saying, 

“A market cap of $2.945 trillion is unrealistic given the current state of the cryptocurrency market and SHIB’s fundamentals.”

Moreover, other dynamics such as utility and ecosystem development will play a role in Shiba Inu’s path to $0.01. Currently, Shibarium, SHIB’s layer-2 network, has a Total Value Locked of only $2.8M per DeFiLlama. In comparison, Ethereum’s TVL stands at $76 billion, indicating that the network has a long way to go to achieve widespread adoption. According to Meta AI,

“While halving SHIB’s supply could lead to an increase in price, reaching $0.01 would require a monumental shift in market dynamics, adoption, and investor interest.”

Nevertheless, the $0.01 price is still possible if the SHIB burn rate accelerates and pushes the supply below 10 trillion tokens. Massive retail and institutional adoption could also drive similar gains. 

Is SHIB Ripe for a 400% Rally? 

SHIB price today shows a bearish structure after a 6% decline to trade at $0.0000146. Despite this bearish outlook, analysts continue to give a bullish Shiba Inu price forecast anticipating that the meme coin could soon rally by more than 400% to new highs. 

According to analyst Javon Marks, SHIB continues to trade within an inverse head and shoulders pattern. This pattern suggests that the downtrend is losing momentum, and a potential reversal to the upside may occur. 

If this pattern plays out, Shiba Inu can rally by 402% to the target price of $0.00081. However, the sentiment across the broader market needs to shift to positive to support such an uptrend. 

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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.