The Shiba Inu squad has been waiting for the price of SHIB to hit 1 cent for some time. The recent recovery initiated by the token has raised the community’s expectations even more.
The second largest meme coin has increased about 4 percent in the past week. Currently, the exchange rate is seen at US$0.00001133, quoted from Watcher. Guru.
SHIB Price Dream To Be $0.01
Recently, prominent community influencer ‘SHIB BPP’ outlined three ways in which Shiba Inu can rise up to US$0.01. The first and most important condition for the same to happen is mass adoption.
As more people enter the SHIB arena, buying pressure will increase, leading to higher prices. On paper, several new partnerships and partnerships have emerged for the Shiba Inu over the last few months.
However, in part on-chain, not much improvement was noted. In fact, as analyzed in a recent article, the holding period of Shiba Inu investors has decreased recently.
In addition, the average transaction size crypto it also fell significantly, making it difficult for SHIB prices to rise. With that said, there is still a long way to go for SHIB to check the mass adoption box for now.
Other important conditions According to the influence of SHIB, staking / liquidity is another condition that must be met for the token price to reach that psychological threshold.
In theory, staking will create deflationary assets in the long run, adding to the pressure bullish at SHIB prices. Liquidity injection, on the other hand, will also have a similar effect, making the landscape favorable for rising prices.
For now, with the help of purchasing para whales and retail accumulation, funds have entered the ecosystem, but there have also been parallel withdrawals.
Thus, only when the former completely overcomes the latter should conditions become favorable for the Shiba Inu.
burning is another condition whose influence shows that it is very important for SHIB to rally to US$0.01. Every day, a large number of tokens are destroyed by sending them to dead wallet addresses.
Over time, as assets become scarce, their value will increase. However, it should be noted that there have been several times in the past when an increase in burn rate has not always translated into a parallel increase in SHIB price.
Thus, it must be remembered that SHIB’s valuation will not increase rapidly. In fact, case Ethereum is a typical example of the same.
Only when the right balance between demand, supply and combustion dynamics is achieved will a smooth long-term appreciation occur.
As explained in a recent article, it was argued that the Shiba Inu price would need to have a market valuation of around US$6.5 trillion to reach the 1 cent per token mark.
This number seems very difficult to achieve in the short or medium term. This figure is greater than the combined market capitalization of Apple, Microsoft, Tesla and Ford.
In fact, the current valuation of the entire crypto market is only US$1.28 trillion. Hence, we will have to wait for several waves of rising prices to occur before SHIB’s market cap balloons to that level.
Only when all of this happens, will the price of SHIB reach 1 cent or the equivalent of IDR 147. [az]