Can Shiba Inu Coin (SHIB) Reach $1?

Shiba Inu has been one of the most surprising and explosive crypto projects in the last few years. Some investors become millionaires, and some lose it all. The big question I see SHIB investors asking is if it can reach one dollar. That’s what I’m looking into today.

Here’s the short answer:

No, Shiba Inu Coin will never hit $1. Even with the coins burns and the “use cases” it will never hit one dollar. The necessary market cap for SHIB to reach $1 is $580 Trillion, which is larger than any market that has ever existed.

There’s a reason why SHIB is struggling to break fractions of a cent; the huge supply. Here’s some math for ya’:

SHIB price = Market Cap / Circulating supply of SHIB.

The equation above logically forces the price to be low when the circulating supply is high.

Here’s a chart showing how much larger the SHIB supply is than other cryptocurrency projects:

(data from CoinGecko)

The others are barely visible next to the huge supply of SHIB. Even Doge Coin, which itself has a huge supply, is absolutely dwarfed by Shiba Inu Coin.

Why Shiba Inu Coin Reaching $1 Is Unrealistic:

As mentioned above, the supply is what keeps SHIBA below $1. But why? Here’s why:

By manipulating the equation in the introduction we can show that for Shiba Inu Coin to reach $1 with the current supply, it needs the following market cap:

Market Cap = SHIB price * supply = $1 * 589,375,180,400,042 = 589.3 Trillion USD.

For Shiba Inu Coin to reach $1, its market cap must reach almost $590 Trillion.

Here’s a theoretical $1 SHIB market cap compared to some other things of high value:

(data sources: Statista, Companiesmarketcap, ICMAGroup, Investopedia)

Whether or not the estimations of the other markets are accurate or not is up for discussion, but what is not up for discussion is this:

Shiba Inu will never hit $1. It would have to outgrow the global derivatives market, which is the largest market to have ever existed. A single cryptocurrency will never be that large, not even Bitcoin.

This Needs To Happen For SHIB To Reach $1:

Shiba Inu burns coins with every transaction. The current burn rate is over five million SHIB per day. I’ve seen it as high as 280 million in a 24-hour window. But we’re currently in a bear market, and the burn will likely pick up in the next bull market. In addition, every now and again we see huge burns.

Let’s assume an average burn of 500 million coins daily, and figure out how long it’ll take to get the supply low enough for a $1 SHIB to be realistic.

I made a table showing the necessary market cap at the expected supply after X decades of burning 500 million SHIB per day:

YearSHIB Circulating SupplyRequired MC For $1 SHIB
2030587,175,000,000,000$5.87 Trillion
2040585,350,000,000,000$5.85 Trillion
2050583,525,000,000,000$5.84 Trillion
2060581,700,000,000,000$5.82 Trillion
2070579,875,000,000,000$5.80 Trillion
2080578,050,000,000,000$5.78 Trillion
2090576,225,000,000,000$5.76 Trillion
2100574,400,000,000,000$5.74 Trillion
2200556,150,000,000,000$5.56 Trillion
2500501,400,000,000,000$5.02 Trillion

Burning 500 million coins daily sounds like a lot, but it’s not nearly enough to chip down on the supply og SHIB. In fact, it would take over 1.6 thousand years for the supply to be cut in half.

Let’s have some fun, and assume SHIB burns 5 Billion coins daily. Here are the new numbers:

YearSHIB Circulating SupplyRequired MC For $1 SHIB
2030570,750,000,000,000$570.75 Trillion
2040552,500,000,000,000$552.50 Trillion
2050534,250,000,000,000$534.25 Trillion
2060516,000,000,000,000$516.00 Trillion
2070497,750,000,000,000$497.75 Trillion
2080479,500,000,000,000$479.50 Trillion
2090461,250,000,000,000$461.25 Trillion
2100443,000,000,000,000$443.00 Trillion
2200260,500,000,000,000$226.50 Trillion
230078,000,000,000,000$78 Trillion

In 2300, inflation has probably devalued the U.S. Dollar to a point where Shiba Inu might actually be worth $78 Trillion, which would put it at a $1 price given a burn of 5 billion coins per day for the next 280 years.

Oh, and please read the last paragraph with a bit of sarcasm…

Conclusion: No, SHIB Wil Not Reach One Dollar

It is practically speaking impossible for Shiba Inu Coin to reach one dollar. The only “realistic” potential future world where we might see SHIB priced at $1 is one where The U.S. Dollar is extremely devalued and 5 billion SHIB are burned every single day for at least three hundred years.