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The Shiba Inu community continues to champion the narrative of a $0.001 price point for the asset, but this goal would be unfeasible without these catalysts.

Shiba Inu (SHIB) remains in the clutches of the bears, much like most cryptocurrencies. However, the asset has its eyes set on the ultimate goal of $0.001 which would mark a 11,173% increase from its current price of $0.0000887. While this seems like a long shot, the Shiba Inu community believes it is feasible.

Nonetheless, an assets price movement is not anchored on belief, but its tokenomics and the laws of economics. Consequently, Shiba Inus $0.001 price goal is contingent on two catalysts: burns and utility.

An assets supply is one of the major factors that determine its value. For Shiba Inu to hit a price of $0.001, its supply needs to reduce drastically. At the current circulating supply of 574.2 trillion, if Shiba Inu were to hit $0.001, its market cap would surge to $574.2 billion. For context, Bitcoin, the largest crypto asset, has a market cap of $518.4 billion.

Such a surge would make SHIB the biggest asset by market cap. The chances of this happening in the foreseeable future are rather low. A solution to the assets supply problem is token burns. SHIB would not have attained its all-time high if not for the 410 trillion token burn carried out by Vitalik Buterin in May 2021.

The Shiba Inu community remains committed to the projects burn campaign, but the current burn rate is unlikely to make a dent on its extensive supply. One of the largest cumulative intraday burns involved 2.25 billion SHIB in 24 hours on May 3. Even if the community incinerates 2.25 billion tokens every day, it would take 90 years to take out 74 trillion SHIB.

Besides burns, an assets utility can help with its price action. Utility refers to the usefulness of an asset beyond its ability to be bought, sold, and traded on an exchange. When an asset is leveraged for its real-world utility, like being used as payment for goods and services, it can help bolster adoption by attracting demand.

Shiba Inu already has utility beyond its speculative value. The asset has been adopted by numerous platforms as a payment method. Its integration in Binance Pay also helps introduce it to multiple e-commerce stores and merchants. However, the community seeks more.

It has been established that Shiba Inu would need to increase its burn rate and attract more utility to get a shot at hitting $0.001. This target is achievable with the introduction of several projects in the ecosystem, including Shibarium and SHIB: The Metaverse.

Shibarium is expected to introduce more utility to the Shiba Inu ecosystem by attracting projects all the while increasing its burn rate by incinerating SHIB with 70% of every base transaction fee. The Metaverse project is also expected to bring up more utility for Shiba Inu and further accelerate adoption.

Conclusively, a $0.001 price target might look difficult for SHIB to attain, but it is not impossible. The asset surged by over 142,000% from a value of $0.0000000605 in March 2021 to its ATH of $0.00008616 in October 2021. This surge was supported by the 410 trillion token burn. An 11,275% increase in the event of subsequent burns is feasible.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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These are the Catalysts that Could Launch Shiba Inu to $0.001 - The Crypto Basic