Any cryptocurrency fan, or fans of Elon Musk on Twitter, will be aware of the dominance Shibu Inu had on the crypto market during 2021.
Another meme coin that followed the path and trajectory of Dogecoin, it grew to incredible levels in a ridiculously short amount of time.
Shibu Inu only started in 2020 but in next to no time it was on the radar on all cryptocurrency investors watchlist, especially when Elon Musk gave it an indirect plug.
The coin came about after Dogecoin launched named after the breed of dog by the same name.
It just so happened Elon Musk bought a Shibu Inu and posted a rather cryptic set of messages linking the pup to the coin. This gave crypto gold mine hunters all the incentive needed to pour into the meme coin.
A story emerged of one man investing $8,000 on Shibu Inu (SHIB) before it exploded and walked away a billionaire in the process.
Shibu Inu took a massive drop in price and market value during the 2022 bear market and general global downfall in all investment markets.
It reached a peak price of $0.00007924 on the 28th October 2021, before falling down to $0.00000772 on the 19th June 2022, a reduction of 90% from its all-time high.
SHIB launched with a price of $0.0000000010 before rising to $0.00007924.
Both of these values are a small fraction of a cent.
This may not seem like a particularly great increase considering this is still less than 1 cent, but this increase is over a forty six million percent gain (yes, that’s over 46,000,000%).
SHIB will need to increase its value by around 1M times its current value to achieve a $1 per coin valuation.
This appears to be a relatively small increase compared to the forty six million percent increase it managed in just over a year, but how likely is it that SHIB could reach $1 a coin?
Market capital is the biggest deciding factor as to whether a cryptocurrency has the potential to 1Mx its current price.
Now, Ethereum managed to increase its price from a low of $0.81 to a high of $4,300, and Bitcoin managed to increase its price from a low of $0.09 to a high of $51,000.
Based on these price increases, it seems feasible that Shibu Inu could increase from $0.000008262 to $1.
But ultimately, it’s the market capital that needs to be analyzed to see the true potential.
What is Market Capital in Cryptocurrency
Market capital in crypto is the sum of current price multiplied by number of tokens in circulation. This calculation provides the most accurate view and valuation of a cryptocurrency as it allows investors to draw comparisons to other cryptocurrencies on the market.
It can be shown more simply using the calculation:
Number of tokens in circulation * Trading Price = Market Value
As to whether Shibu Inu can reach a $1 coin valuation will be based on its current market value against other cryptocurrency, and other valuable companies.
If the coin has an extremely high market capital, even if it has a particularly low unit price, it indicates growth of this type of value is very difficult
Although, a low market capital, even with a relatively high price, can show the crypto at least has the potential for large growth and very high returns.
Whether a cryptocurrency price increase or falls is down to demand, so it needs to be able to find buyers and investors to increase at all, let alone by 1 million times its current value.
We can look at this using an example:
A cryptocurrency with 5,000,000 circulating coins may have a trade value of $20 a coin, giving this cryptocurrency a market share of $100,000,000.
Another cryptocurrency with 30 billion circulating coins may have a trade value of $1 a coin, giving this cryptocurrency a market share of $30,000,000,000.
Although the second cryptocurrency has a current price of $1 compared to the first cryptocurrency of $20, it is the $20 cryptocurrency that is worth less.
3,000 times less in fact.
It will be relatively easier for the first coin to increase 100 times in value to become worth $2,000 and have a market capital of $10billion than it will for the second coin to increase 100 times in value, become $100 a coin, but have a market capital of $3trillion!
Market capital is a better indicator of potential future growth when comparing against other cryptocurrencies, than the value of the coin.
Market Capital of Shibu Inu
Day to day the market capital of Shibu Inu will fluctuate.
The number of coins in circulation will stay relatively the same over the short term but based on supply and demand of the crypto it’s unit price will fluctuate, and therefore so will its market capital.
Unless there is a dramatic shift in the crypto market, or some bad news regarding the crypto, then SHIB should stay relatively stable.
At the current time the market capital of Shibu Inu is $4.3billion.
This is quite a considerable size for many cryptocurrencies. It is generally always in the top 15 valuable cryptocurrencies at any point in time since 2021.
Although 4.3 billion is a substantial market capital, compared to Bitcoin and Ethereum it is relatively small.
Its current huge size is due to the media coverage of the crypto based on Elon Musk tweets and its rising and huge growth.
This does though mean many people who bought in to cryptocurrency already own Shibu Inu and joined in the search for crypto gold, meaning any huge growth will have to either by way of shift from other major cryptocurrencies into SHIB, or a large increase in crypto investors.
For SHIB to reach $1 a coin it would need to increase its market capital to such an incredible size it would be greater than the GDP of every country in the world!
The size would almost be immeasurable.
The market capital wouldn’t be billions, or even trillions – it would even surpass the quadrillion stage and into stratospheres not even dreamed of in terms of monetary value.
For SHIB to be worth even 1 cent per coin would require $40trillion and be worth the equivalent of all top tech companies combined.
Why Market Capital is so important for Shibu Inu
It isn’t possible to take a cryptocurrency price and compare it, in terms of size and value, to another cryptocurrency.
In fact, the price is almost completely irrelevant.
As we have seen, a cryptocurrency at $0.25 maybe a lot more valuable than one with a current price of $250.
For example, if crypto C has a current trading price of $3 but there are 70 billion coins in circulation it will have a much harder time increasing to $5 compared to the chances crypto D has increasing from $5 to $500 which has a current circulation of 100 million coins.
This is because of the amount of money within the overall market and the amount already invested into crypto C.
In the example above crypto C already has a valuation of $210billion, which would make this crypto the second most valuable on the market.
Whereas crypto D only has a valuation of $500million.
If crypto D began to gain traction and started to see substantial gains, the market would shift and potentially sell their holding of crypto C in exchange for crypto D, seeking a higher return.
Just 10% of the amount held of crypto C being sold off and moving into crypto D would see crypto D increase 4,000%, or 40x.
On the other hand, all holders of crypto D could sell and move this amount in to crypto C, and crypto C would increase by just 0.1%.
Therefore, a cryptocurrency with a much smaller market capital has a much better opportunity of increasing significantly if demand increases, and money moves across from other cryptocurrencies.
To understand whether Shibu Inu can reach $1 let’s compare its market capital with other cryptocurrencies, although I think we have already seen the impossibility of this happening.
Shibu Inu Market Cap vs Other Cryptocurrencies
Here is a table showing how the Shibu Inu SHIB cryptocurrency compares to other top coins such as Bitcoin, Ethereum, Solana Dogecoin, Polygon MATIC and Decentraland:
| Cryptocurrency | Market Capital |
|---|---|
| Bitcoin | $325billion |
| Ethereum | $147billion |
| Dogecoin | $8.4billion |
| Polygon MATIC | $7.3billion |
| Solana | $4.7billion |
| Shibu Inu | $4.3billion |
| The Sandbox | $762million |
| Decentraland | $674million |
Could Shibu Inu Reach $1
It is almost impossible for Shibu Inu to reach a value of $1 per coin.
It would take almost all the money in the world, and it may still not reach its target.
Even a value of $0.01 would be almost out of the realm of possibility.
This is due to the fact SHIB has 550 billion coins in circulation which means the total amount invested needs to be divided by this huge number of coins to reach its price.
In fact, Shibu Inu has one of the highest number of coins in circulation and only second to BitTorrent-New (BTT) with 947 billion coins in circulation and a coin price of $0.0000006251 a coin.
This isn’t to say Shibu Inu can’t grow, it has media interest and now good brand recognition in the crypto world, but the founders will need to develop something or have Shibu Inu used as an important commodity or currency in a popular application for it to continue to see good growth.
