In a nutshell, the canine-themed meme coin is only struggling to maintain a relatively constant price amid the unstable market conditions.
This has reduced faith in Shiba Inu among SHIB holders. It also contributes to discouraging potential investors, as no one would want to push funds into a project with no guaranteed returns on investment.
On the other hand, several developments aimed at improving Shiba Inu’s overall ecosystem and enhancing its market outlook have rolled out. This implies that the Shiba Inu development team is hungry for expansion even though things are not going as planned.
Among the several launched projects on Shiba Inu, the Shibarium is the latest. Before its launch, speculations on how this layer-2 scaling solution network would catapult SHIB to $0.1 and $0.01 through its features, especially its ability to reduce SHIB’s circulating pool abound, attracting interest from the crypto community.
Notably, Shibarium’s initial release was hampered by some traffic glitches. It was relaunched in late August and has since been functioning perfectly.
Despite staying for less than a week after its second release, Shibarium was able to incinerate 5.7 billion SHIB tokens in August. It is left to see how the Shibarium would improve SHIB’s burn rate by the end of September.
Meanwhile, questions on why SHIB seems to find it difficult to delete some of the zeros in its selling price have emerged, and we shall be delving into some of these reasons in this insight.
However, before we proceed, it is worth mentioning that SHIB is currently changing hands at a $0.00000730 price rate. Attaining $0.01 and $0.1 price levels would imply deleting 4 and 5 zeros, respectively.
SHIB’s Massive Circulating Supply Remains A Significant Hindrance
Shiba Inu’s 589T circulating supply remains its major drawback. This massive supply must be reduced drastically to a reasonable extent to enable the digital asset’s market cap to accommodate SHIB at either the $0.1 or $0.01 market prices. According to Shiba Inu’s data on CoinGecko, the crypto asset boasts a market capitalization of $4,295,275,731.
If SHIB is expected to reach those higher prices, the circulating supply has to be reduced by a considerable percentage. If not, it means the asset is being indirectly projected to be bigger than Apple, the United States, and others, which is relatively impossible.
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Overall Market Sentiment And Outlook
The general crypto market outlook has not been favorable for most crypto projects. Top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Binance Smart Chain (BNB) have since been fluctuating and also recording significant losses.
In addition, sentiments on the crypto market appear gloomy as investors seem to be selling off out of fear of losing further.
Till the discussed factor in this insight ceases to exist or turns around for the better, Shiba Inu and similar crypto projects with gargantuan supply could be set in for an extended period of poor market outlook.