will shiba inu coin reach $1
Two key factors constrain Shiba Inu's ability to break through the $1 mark.
More than two years after the peak of meme coin mania, Shiba Inu (SHIB 0.58%) remains a favorite target of crypto investors in search of the ultimate low-cost, high-upside investment. Despite the fact that it is still trading for the unbelievably low price of just $0.000010, many investors remain bullish that Shiba Inu can one day reach the $1 mark.
But just how realistic is that price
target? Shiba Inu is still up just 25% for the year amid a sharp crypto rally
that has seen the price of Bitcoin (BTC 2.59%) soar by
more than 150%. So if you are thinking about investing in Shiba Inu, here are
two important things to keep in mind.
1. The coin supply problem
Shiba Inu's stubbornly low price can
be traced back to one primary factor: a huge circulating supply of 589 trillion
coins. To put that number into context, meme-coin rival Dogecoin (DOGE 2.14%) has
a circulating coin supply of 142 billion. Ethereum (ETH 1.81%) has
a circulating supply of 120 million. And Bitcoin has a circulating supply of
only 20 million.
Just with these numbers, it's
possible to come up with a general rule of thumb for the crypto market: The
greater the scarcity of a coin, the higher the price.
With some elementary-school math,
it's possible to understand why a price target of $1 is so far out of reach. A
price of $1 multiplied by a circulating supply of 589 trillion coins gives you
an implied valuation of $589 trillion.
That number is unthinkably large when
you consider that only a handful of U.S. companies have a market valuation of
$1 trillion or more. So are we really going to project that Shiba Inu will be
worth 500 times the value of an Amazon or Alphabet?
2. An overcrowded meme coin market
Complicating matters further is an
overcrowded meme coin market. When Shiba Inu was launched in August 2020, it
was still something of a rarity in the crypto world. Sure, there was Dogecoin,
but there really weren't any other mainstream meme coin competitors. It's easy
to see how Shiba Inu captured the imagination of investors.
Nowadays, it almost seems like there
has been a frenzied meme-coin breeding program featuring those lovable Shiba
Inu dogs.
For example, there's Floki for
fans of Elon Musk's pet Shiba Inu named Floki. And there's DogeElon
Mars for fans of Shiba Inu dogs going to Mars with Elon Musk.
All of this makes it very difficult
for Shiba Inu to regain its traction with meme coin investors. Arguably, the
hottest meme coin of 2023 hasn't been Shiba Inu at all -- it's been Bonk,
which is up a staggering 10,000% this year.
As a result, one of the leading
blockchain developers for Shiba Inu recently acknowledged that it's time to
forget about memes and focus instead on the harsh reality of building a working
blockchain capable of gaining global adoption.
Shiba Inu Team Seeks to Launch SHIB Domains for Websites and Email :
That’s the dream, anyway, of the team behind the dog-themed Shiba Inu (SHIB) crypto ecosystem, which announced Tuesday that it plans to apply for a .shib top-level-domain (TLD) with ICANN, the nonprofit that maintains numerous aspects of the internet.
While organizations such as the Ethereum Name Service and companies like Unstoppable Domains already offer crypto users the ability to claim domain names ending like .eth or .crypto, those domains can be directed to crypto wallets—not websites accessible through any traditional browser.
Such innovations have certainly helped streamline online identities in the age of multi-dozen character wallet addresses. But no crypto-themed name—with ownership represented via an NFT—currently connects to the Domain Name System (DNS), which governs basic internet functions including website names and email addresses.
SHIB now seeks to change this—and become the first crypto domain to permeate the mainstream internet. To do so, the ecosystem has partnered with D3 Global, a digital infrastructure provider, to help make Shiba Inu’s application for a TLD as compelling as possible.
“Our partnership with D3 allows us to scale outside of the existing #ShibArmy and give over 5 billion internet users direct access to the SHIB ecosystem,” Shytoshi Kusama, Shiba Inu’s Lead Developer, said in a statement. “Bringing real domains to SHIB is a big deal, expanding our vision for digital identities within our decentralized ecosystem, while driving long-term revenue generation within the ecosystem.”
Shiba Inu to Become First Web3 Protocol to Apply for a TL Domain :
The announcement came up in the seventh and latest issue of the Shib Magazine. Notably, a TLD is the last segment of a domain name, located to the right of the dot. Examples include .com, .net and .org.
TLDs help to categorize and identify websites, and they are managed by the Internet Corporation for Assigned Names and Numbers (ICANN).
Shiba Inu seeks to create a decentralized TLD that would allow its users to register their own .shib names that could be resolved in the global domain name system (DNS). This would enable them to have a unique digital identity that is compatible with Web2 and Web3 applications.
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Shiba Inu Partners with D3
To achieve this ambitious goal, Shiba Inu has partnered with D3 Global, a domain company that specializes in bridging the gap between Web2 and Web3. D3 Global is led by Fred Hsu and Shayan Rostam, who have decades of experience and expertise in the domain industry.
“This digital identity unlocks a world of possibilities… ensuring that users can maximize the potential of their names,” said Fred Hsu, the CEO of D3 Global.
By collaborating with Shiba Inu, D3 Global aims to introduce .shib name tokens that would offer users a simple and affordable way to access the benefits of Web3, such as security, privacy, and interoperability.
Shytoshi Kusama, Shiba Inu lead developer, remarked: “We are extremely proud to once again trailblaze decentralization in world history.” Kusama stated that the initiative with D3 represents the first instance where a Web3 project has ventured to secure a stake in the internet.
Disclaimer:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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