Will Shiba Inu (SHIB) Coin Reach 10 Cents?

Many articles, YouTube videos, and forum posts claim Shiba Inu (SHIB) crypto can or have the potential to reach $0.10 in value. Unfortunately, those claims are not only misleading; it’s dangerous for us – the retail investors. In this article, we will explain why SHIB can never hit 10 Cents.

Unfortunately, Shiba Inu (SHIB) will never reach $0.10 or 10 cents because it is financially illogical. At a $0.10 valuation, the total market cap of SHIB will be $54.9 Trillion, which is 2.5 times of US GDP, 54 times more than Bitcoin, 100 times more than Ethereum, 27 times more than Apple (AAPL), and 55 times more than Tesla (TSLA) market cap. 

Let’s elaborate.

Bitcoin, Dogecoin is a standalone cryptocurrency. These cryptos have a mining system. Independent miners worldwide run thousands of mining computers (rigs) to keep the network alive and running. 

However, SHIB is an ERC20 token-based cryptocurrency. It means the Shiba Inu (SHIB) coin does not have any independent mining network. Instead, it’s an Ethereum smart-contract based cryptocurrency, similar to Binance Coin (BNB), Tether (USDT), Chainlink (LINK), USD Coin (USDC), TRON (TRX), etc. 

Therefore, the SHIB coin is not something new. It’s another ERC20 token on the Ethereum network. But we have to give credit where credit is due. The SHIB community is robust on Reddit, Twitter, Facebook (Meta), YouTube, and other social media platforms. 

From our experience, we can confidently say, the long-term success of a cryptocurrency largely depends on technology and community. It’s why Bitcoin is the largest cryptocurrency. It’s not only the pioneer but also has the most prominent crypto following in the world. 

So, despite SHIB being similar to other ERC20 token coins, the community is the differentiating factor.  

According to CoinMarketCap, there are currently 549 Trillion SHIB coins in circulation. Yes, it’s Trillion. Initially, there were 1000 Trillion SHIB (1 Quadrillion), but around 451 Trillion has been locked away or burned forever. 

To Shiba Inu (SHIB) reach $0.10, the total market cap of SHIB has to be 549 Trillion x $0.10 = $54.9 Trillion. Let’s compare this market cap with other financial instruments and determine whether it makes sense or not.

  • According to the Federal Government, the US’s total Gross Domestic Products value is around $20 Trillion, whereas China’s GDP is around $14 Trillion.
  • According to the Federal Reserve, there are around $8 Trillion and coins in circulation in the world.
  • The GDP of the entire planet earth is around $80 Trillion. (source)
  • According to the US government, the US raises $4 Trillion in annual taxation.

Here’s a table that shows the market cap of various popular stocks and metals in the world.

ProductMarket Cap
Microsoft (MSFT)$2.48 Trillion
Apple (AAPL)$2.47 Trillion
Tesla (TSLA)$1.1 Trillion
Amazon (AMZN)$1.7 Trillion
Google (GOOGL)$1.9 Trillion
Gold$11.3 Trillion
Silver$1.3 Trillion
Bitcoin$1.1 Trillion
Ethereum$0.52 Trillion
US GDP$20 Trillion
China GDP$14 Trillion
World GDP$80 Trillion
Stock Market Cap of the Entire World$97 Trillion

From the above chart, we see that for SHIB to reach 10 cents, the total market cap of Shiba Inu has to be 549 Trillion x $0.10 = $54.9 Trillion. 

The total cryptocurrency market of all coins and tokens combined is under $2 trillion.

It does not make any logical sense that SHIB’s market cap can be 54 times more than that of Bitcoin, 100 times more than Ethereum, 27 times more than Apple, 2.5 times more than US GDP, or half of the World GDP. Therefore, according to simple reasoning, the SHIB coin will never even reach a valuation of $0.10 or 10 cents.

SHIB is based on Ethereum ERC20. SHIB is a monetary token on the Ethereum network. It’s not a product, not a platform, unlike Apple, Tesla, or Microsoft.

Apple, Tesla, Google, etc., are precious companies because they make excellent products that consumers use and love. It’s why they are Trillion dollar company. On the other hand, SHIB does not create any product; it’s a currency. A currency does not have inherent value long term.

It’s absurd that the total market cap of SHIB will be more than Bitcoin, Ethereum, Apple, Tesla, and other valuable companies when SHIB is nothing but an Ethereum based ERC20 token. 

As an investor, we have to be impassioned. Being an emotional investor will cloud our judgment and will lead us to make terrible money decisions. Please invest wisely. 

In short, Shiba Inu (SHIB) will never hit $0.10 or 10 cents.