Benzinga - Shiba Inu (CRYPTO: SHIB), witnessed an extraordinary rise in the crypto market throughout 2021 but has recently experienced a significant decline from its all-time high.
What Happened: With its compatibility with the Ethereum (CRYPTO: ETH) ecosystem and the development of Shibarium, a Layer-2 solution, there is speculation that Shiba Inu could become a significant player in decentralized applications, particularly in gaming and metaverse use cases.
We discuss the market cap implications if the Dogecoin (CRYPTO: DOGE) rival Shiba Inu were to reach $0.01 per token and how it would compare to renowned companies like Apple.
Circulating Supply: Shiba Inu has implemented a burning strategy to reduce its token supply. With a staggering 589 trillion tokens currently in circulation, the impact of burning would require a substantial reduction to make a meaningful dent in the overall supply.
It is worth noting that Shiba Inu’s burning rate surged on Monday, with an increase of 6340% in the last 24 hours, resulting in the burning of 79 million SHIB tokens, as per data from Shibburn, a Shiba Inu burn tracker.
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The Potential of Shibarium: One potential catalyst for Shiba Inu’s future growth is Shibarium, a Layer-2 solution built on top of Shiba Inu’s main network.
The primary goal of Shibarium is to enhance transaction efficiency and reduce fees. By creating a more streamlined blockchain network, Shiba Inu aims to position itself as a prominent player in decentralized applications, especially within the gaming and metaverse realms.
Shibarium, developed by Shytoshi Kusama, the lead developer behind Shiba Inu is set to be launched in August.
Market Capitalization Comparison: While some bullish arguments suggest that Shiba Inu might reach $0.01 per token over time, it is important to consider the challenges it faces.
Even if the price were to reach this level, the circulating supply would remain considerable, resulting in a gargantuan network market cap of $5.9 trillion.
This amount is equivalent to approximately 25% of the United State’s total gross domestic product (GDP). Comparing this to the current market cap of Bitcoin (CRYPTO: BTC), which stands at $589.17 billion, Shiba Inu would surpass renowned companies like Apple Inc in terms of market value.
While the burning strategy and Shibarium provide opportunities for growth, the sheer number of tokens in circulation poses a significant hurdle.
Price Action: At the time of writing, SHIB was trading at $0.000007958 down 0.62 % in the last 24 hours, data from Benzinga Pro shows.
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