As the Shiba Inu community continues to rally behind the $0.001 milestone, several factors suggest that the token may lack the necessary fundamentals to achieve this target.
Despite starting October with a modest relief rally that took its price close to $0.000013, Shiba Inu has once again continued its lackluster performance.
As of October 4 at 05:14 a.m. (ET), Shiba Inu was trading at $0.00001257, down 1.22% over the past 24 hours. The token currently sits in 22nd place in the global crypto ranking, boasting a market cap of $7.41 billion.
In addition, popular community analysts Sheriff and LuckSide Crypto echoed this projection, forecasting a surge to the same level.
Market Cap Requirement
While the target is enticing, it is crucial to understand what it will take for SHIB to achieve the milestone.
Reaching a target of $0.001 would require the price of SHIB to grow significantly from the current level. At the current price of $0.00001257, SHIB must rally 7,855% to reach the $0.001 milestone.
If this happens, Shiba Inu’s market cap would rise to $589.24 billion, assuming the token’s supply remains relatively stable at 589.24 trillion. For context, this valuation surpasses the market cap of most crypto assets, including Ethereum, which currently stands at $548 billion.
Why $0.001 Target Might Be Unrealistic
While many in the community view $0.001 as a realistic target—often citing SHIB’s explosive rally in the 2020-2021 bull run—several factors indicate the path to such levels may be far more challenging.
Massive Supply
One of the biggest obstacles to Shiba Inu’s journey toward ambitious price targets such as $0.001 is its enormous circulating supply of 589.24 trillion tokens. This vast supply dilutes price impact, meaning even large inflows of capital produce only modest price gains.
Although progress has been made through token burns—reducing supply by over 41%—SHIB still requires a far more aggressive burn rate to realistically approach $0.001.
However, recent data shows that momentum has stalled, with only about 5.7 million tokens burned in the past 24 hours, a figure too small to meaningfully influence price dynamics.
Shiba Inu daily burn rate
Lack of Institutional Involvement
Even if the large supply persists, Shiba Inu would still need substantial institutional adoption to sustain a market capitalization exceeding $580 billion. Despite its massive retail base, SHIB currently lacks meaningful engagement from institutional investors.
This is evident in the absence of any ETF filings centered on SHIB, despite issuers showing growing interest in rival tokens such as Dogecoin, which has led to multiple ETF proposals focused on DOGE.
Anonymous Leadership
Another factor limiting SHIB’s chance of hitting $0.001 is the lack of transparency within its leadership. Unlike established projects such as Dogecoin and Ethereum, the core developers and ecosystem leaders of Shiba Inu remain anonymous, operating under pseudonyms.
Many market observers view this anonymity as a barrier to institutional adoption. Until this perception changes, large-scale investment in SHIB’s ecosystem that could drive the token’s price to $0.001 may remain out of reach.
