Shiba Inu (SHIB) faced downward pressure on Monday, slipping 1.71% over the past 24 hours to $0.00001678 amid broader market consolidation.
Nevertheless, while bears maintained control of the immediate price action, trading activity showed remarkable resilience, with volume surging 24.35% to $266.92M, suggesting sustained interest despite the dip. Moreover, community sentiment remained overwhelmingly optimistic, with 88% of traders maintaining a bullish stance, according to the latest CoinMarketCap data.
However, amid growing speculation about SHIB’s future trajectory, crypto analyst “Investing Haven” has poured cold water on the token’s ambitious price targets. In a detailed analysis shared on Sunday, the pundit challenged the feasibility of SHIB ever reaching the coveted $1 milestone, pointing to the token’s massive circulating supply as a fundamental concern.
“What Would It Take for $SHIB to Reach $1? $1 SHIB would require a $589 trillion market cap, an enormous stretch,” the analyst tweeted, highlighting the mathematical improbability of such a milestone.
Notably, the analysis points to several fundamental obstacles, including the necessity for massive supply burns and the development of real-world utility beyond mere speculation. With a current circulating supply of 589.26T SHIB, reaching the dollar mark would require a market capitalization larger than the entire global economy.
“Supply burns are essential, and global adoption and real use cases must grow significantly. Speculation alone won’t sustain such valuations,” the analyst emphasized in another tweet.
However, SHIB’s ecosystem remains buoyed by an optimistic outlook from its leaders. LUCIE, the lead marketer, recently reaffirmed the ecosystem’s potential for substantial growth, emphasizing that short-term price fluctuations should not dissuade long-term investors. Shytoshi Kusama, the project’s lead developer, last week underscored SHIB’s remarkable lifetime surge of 33,774,726.7% from its all-time low, a performance that surpasses major cryptocurrencies such as Dogecoin, Solana, and Binance Coin.
Nevertheless, Kusama pointed out that “we still have far to go and much work to be done to get the Ecosystem the respect it deserves,” suggesting that enhancements like increased token-burning mechanisms and other strategic improvements are on the horizon.
That said, The Shiba Inu project has already been making tangible strides toward genuine utility. Notably, it recently announced a partnership with Mass, a financial solutions company, to build the finance layer for its ambitious “Shiba State” initiative. This collaboration is part of a larger strategy to evolve SHIB from its meme coin origins into a reputable decentralized blockchain project.
Adding to this momentum, token-burning activities have drawn attention within the SHIB ecosystem. On Thursday, a project named Shiro Neko (SHIRO) burned 5,581,450,000 SHIB, valued at approximately $100,000. This strategic burn highlights a growing trend as projects leverage Shiba Inu’s infrastructure to engage the community and draw attention. Lucie, SHIB’s lead marketer, has previously mentioned that the goal is to attract more projects to Shibarium, SHIB’s Layer 2 blockchain. This influx could potentially increase user activity, resulting in more frequent token burns and boosting SHIB’s value over time.