Understanding Shiba Inu Tokenomics and Price Projection
Analyzing tokenomics is crucial when it comes to investing in cryptocurrencies. The supply inflation or deflation of a token has a significant impact on its performance. Taking a different perspective, we can examine the Shiba Inu (SHIB) tokenomics and calculate its potential price if it reaches its all-time high market cap.
The Role of Supply Inflation and Deflation
For a token to maintain its value, it requires more demand in the face of inflationary supply or less demand in the face of deflationary supply. These factors play a vital role in determining whether the price of a cryptocurrency rises or falls. Each cryptocurrency, including Shiba Inu, has its unique tokenomics structure.
SHIB’s All-Time High Market Cap
On May 11, 2021, Shiba Inu reached an all-time high market cap of $249.833 billion according to TradingView’s CRYPTOCAP index. Based on a circulating supply of 1 quadrillion SHIB, the price could have been as high as $0.000249833 on that day.
However, CoinMarketCap reported an all-time high price of $0.00008185 for SHIB on October 28, 2021, with a market capitalization of $54.223 billion. This suggests a circulating supply of around 662 trillion SHIB.
Shiba Inu Supply Deflation and Economic Effects
Currently, Shiba Inu has a circulating supply of 589.346 trillion SHIB due to supply deflation. Since May 2021, there has been a deflation of 410.66 trillion SHIB (41%) and since October 2021, a deflation of 72.66 trillion SHIB (11%).
This supply deflation has significant economic implications. If Shiba Inu reaches its highest speculative demand based on market cap, it would trade at a proportionally higher price than the previous all-time high. With the current circulating supply, Shiba Inu would be priced at $0.000424 per token at its highest capitalization. This represents a 70% increase from the 2021 price and a potential 5,200% increase from the current price.
However, it’s important to note that this projection assumes the same demand as in 2021, which may not be guaranteed. The difference in the all-time high prices should also be considered as a potential anomaly. Additionally, the Shiba Inu smart contract allows for a supply increase at any time, which could significantly impact SHIB’s performance.
Hot Take: The Future of Shiba Inu
While analyzing Shiba Inu’s tokenomics and price projection can provide insights into its potential performance, it’s essential to approach it with caution. The forecast relies on maintaining the same level of demand as in 2021 and considers potential anomalies in historical prices. The supply inflation or deflation can also have a significant impact on SHIB’s future. Ultimately, investing in cryptocurrencies involves risks and uncertainties that should be carefully evaluated.
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