Shiba Inu was created in 2020 by an anonymous developer named Ryoshi. Initially, this token attracted attention because it was expected to achieve similar success to Dogecoin – the original meme coin which was rising sharply at that time.

In 2021, Shiba Inu experienced a shocking breakout, rising by up to 45,278,000%, one of the largest annual increases in the history of the financial market. With just a $3 investment at the right time, an investor could turn it into over $1 million.

However, this surge is entirely based on speculation, and after the wave of excitement subsided, the SHIB price dropped 84% from its peak. Currently, Shiba Inu is still struggling to create sustainable growth momentum due to a lack of fundamental factors. Nevertheless, some crypto-friendly policies from the Donald Trump administration are creating a positive sentiment in the market.

Why Is It Difficult For Shiba Inu To Benefit From Crypto-Friendly Policies?

The biggest problem for Shiba Inu is the lack of real-world application. This currency is too volatile to be considered a store of value, and according to data from Cryptwerk, only 1,074 businesses worldwide accept SHIB as a means of payment.

The Trump administration is loosening regulations and encouraging the creation of new value for crypto. For example:

  • Establish a digital asset repository to hold cryptocurrencies seized from criminal activities (but not Shiba Inu).

  • Appoint Paul Atkins – a crypto supporter – as SEC Chairman, helping to reduce legal pressure.

However, these policies do not address the speculative nature and lack of widespread acceptance of Shiba Inu.

"The Wall" of $589 Trillion Prevents SHIB From Reaching $1

The massive supply is the biggest barrier. Currently, Shiba Inu has 589.5 trillion tokens in circulation. At a price of $0.000014/token, the market cap is around $8.1 billion.

If the price reaches $1/token, the market cap would be $589.5 trillion – 137 times the value of Nvidia (the largest company in the world currently) and 5 times the global GDP (approximately $111 trillion last year). This cannot happen without a drastic reduction in supply.

The Shiba Inu Community And The 'Burn' Token Plan

The solution the community is aiming for is to burn tokens – sending them to dead wallets to permanently remove them from circulation, thereby increasing the value of the remaining tokens.

Theoretically, for the SHIB price to reach $1, 99.99998% of the tokens need to be burned, leaving only about 8.1 billion tokens. But this means almost every investor must participate, and at that point, each person's net asset value remains unchanged – as they would own fewer tokens at a higher price.

Worse, the current rate is only 1.7 billion tokens burned per month, equivalent to 20.4 billion tokens/year. At this rate, it would take 28,882 years to burn the necessary amount – and all for the return of... no one making any extra money.

Conclusion

Although the market is benefiting from the crypto-friendly policies of the Trump administration, Shiba Inu is unlikely to reach the $1 mark by 2025 – it may never achieve this throughout our lifetime if the supply does not change drastically. For investors, Shiba Inu remains a highly speculative token, and the $1 goal is merely a fanciful dream under current conditions.