Can Aggressive Token Burns Help Shiba Inu (SHIB) Hit the Ambitious $0.01 Target?

Despite the positive developments in the crypto market, Shiba Inu's performance has failed to meet the expectations of its supporters.

Shiba Inu (SHIB) has faced challenges in terms of price performance, with many looking for potential paths to the token’s growth. While aggressive token burns are often considered the most realistic way for SHIB to hit the ambitious $0.01 target, there are other factors that could contribute to the token’s rise.

Shiba Inu’s Struggle and Market Expectations

Despite positive developments in the crypto market, such as the U.S. government’s increasing support for crypto, which began visibly with former President Donald Trump and aims to establish clear and fair regulations, and the SEC’s recent statement that tokens like Shiba Inu are not considered securities, providing some relief to the crypto community, Shiba Inu’s performance has failed to meet the expectations of its supporters.

Many within the Shiba Inu community believed that the token would be trading at higher levels by now. However, the token has struggled to maintain momentum. This disappointment comes even as the U.S. government, particularly in the Trump administration, has shown strong support for the crypto space.

As of now, SHIB is priced at $0.00001327, having fallen by 10.28% in the past week and 60.13% from its December 8 peak of $0.00003329. To reach the $0.01 target, Shiba Inu would need to increase by an astronomical 75,257%. If SHIB were to reach this milestone, its market cap would surge to a staggering $5.89 trillion, assuming that the supply of 589.5 trillion tokens remains constant.

Can Burns Achieve the $0.01 Target?

The $0.01 prediction has become a popular topic of discussion in the Shiba Inu community. While Lucie, the marketing lead for Shiba Inu, remains optimistic about SHIB’s potential to reach the $0.01 target, many critics argue that this goal can only be achieved through aggressive token burns. These burns would drastically reduce SHIB’s supply, making it more scarce and potentially driving up its price.

However, the process of burns alone may not be sufficient for SHIB to reach $0.01. The critics suggest that while burning tokens might help, other factors may play a role in driving its price upward.

Other Ways SHIB Can Reach $0.01

In addition to burns, one alternative scenario for SHIB’s potential rise involves its correlation with Bitcoin (BTC). Over the past 30 days, Shiba Inu has shown a strong correlation with Bitcoin, standing at 92% according to data from IntoTheBlock. This means that whenever Bitcoin’s price rises, Shiba Inu tends to follow suit, and vice versa.

Given that Bitcoin often leads the cryptocurrency market in terms of price movements, it’s possible that if Bitcoin experiences a significant surge, Shiba Inu could see a much larger percentage increase. Historically, Shiba Inu has shown the ability to outperform Bitcoin during bull runs. Therefore, a sharp rise in Bitcoin’s price could set the stage for SHIB to achieve the $0.01 target, even without aggressive burns.

Bitcoin’s Role in SHIB’s Potential Surge

However, for this theory to hold, Bitcoin must maintain its status as the largest cryptocurrency by market capitalization. If SHIB reaches $0.01, it would have a market capitalization of $5.89 trillion. This implies that Bitcoin would need to surpass this market cap in order to retain its dominance in the crypto market.

At a market cap of $5.89 trillion, Bitcoin would need to be priced at $296,585 per coin, assuming it maintains its circulating supply of approximately 19.86 million coins. Furthermore, if Bitcoin were to double Shiba Inu’s $5.89 trillion market cap, the premier cryptocurrency’s valuation would reach $11.78 trillion, resulting in a price of $593,171 per Bitcoin—an increase of 516% from its current price of $96,265.

This hypothetical scenario assumes that Bitcoin continues to lead the market and that Shiba Inu remains closely correlated with Bitcoin’s price movements. While this situation could allow SHIB to reach $0.01, it’s important to recognize that there are no guarantees. Bitcoin’s price may not experience the same level of surge, and market dynamics can change at any time.

Investors are advised to conduct thorough research and remain aware of the risks involved in cryptocurrency investments before making any decisions. Despite the optimism within the Shiba Inu community, achieving $0.01 is not a certainty. While burns may help, Shiba Inu’s future also depends on external factors, such as Bitcoin’s performance. If Bitcoin continues to rise, we might see Shiba Inu experience a significant surge, potentially reaching the $