Shiba Inu (SHIB) had one of the most successful launches in crypto history. The asset saw incredible gains within a short period of time, leading to many calling it a millionaire-maker. SHIB’s price skyrocketed by many million percent soon after its debut, and early investors made humongous profits with minimal investments. According to Changelly’s ROI calculator, if you had purchases $10 worth of Shiba Inu (SHIB) on August 2, 2020, and sold them when SHIB hit an all-time high of $0.00008616 on October 28, 2021, you would have made more than $1 million in profit. Let’s discuss if SHIB can replicate this massive growth cycle once again.
Can Shiba Inu Still turn $10 Into $1 Million?
One of the primary reasons for Shiba Inu’s (SHIB) incredible popularity is the fact that it turned several early investors with little to no investing knowledge into multi-millionaires. However, many people bought SHIB at the top and are sitting on losses. On the other hand, people who missed out on SHIB’s incredible 2021 rally wonder if the asset can replicate its previous pattern.
There were several factors that drove Shiba Inu’s (SHIB) incredible 2021 rally. One of the most significant drivers for SHIB’s price was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon launch. Shiba Inu’s association with Buterin led to a big surge in investor confidence, leading to high demand. Meanwhile, Buterin decided to burn 90% of the coins he received. The sudden dip in supply with demand still high led to a massive price rally for SHIB.
Shiba Inu (SHIB) still has about 589 trillion coins in circulation right now. The high supply presents a substantial barrier to very high prices. Moreover, another Buterin-style burn is nearly impossible. Lead developer Shytoshi Kusama has also said that burns alone will not push SHIB’s price. The project needs more adoption for prices to rally.
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Therefore, realistically, it may not be possible for Shiba Inu (SHIB) to replicate its 2021 rally. However, if the project can drastically reduce its supply, while increasing demand, we could potentially see another massive price surge.
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