Don’t ask if something can be done. Instead, ask how it can be done.
Some are speculating these days about whether or not Shiba Inu (CRYPTO:SHIB) can reach $0.01 or an even higher price. Sure it can. But the path to doing so won’t be an easy one. After all, we’re talking about a gain of nearly 36,000%. Here’s what it will take for Shiba Inu to hit $0.01.
1. A booming overall cryptocurrency market
A rising tide lifts all boats. The opposite of the old adage is also usually true. If Shiba Inu has any chance of reaching $0.01, there will need to be a booming overall cryptocurrency market.
I’ve noted in the past that the single biggest risk for Shiba Inu is that investors could shift to a “risk-off” mentality. In such an environment, crypto investors could head for the exits en masse and put their money in less risky assets.
To be sure, a cryptocurrency boom won’t necessarily translate to huge gains for Shiba Inu. There are other factors that could hold the digital coin back. But the odds that Shiba Inu will ever attain a price of $0.01 in a negative market for cryptocurrencies, in general, are slim to none.
2. Game-changing catalysts
Let’s assume, though, that the crypto market remains healthy and attracts even more investors. Shiba Inu will still need some big catalysts, arguably some game-changing catalysts, to soar anywhere close to 36,000%.
The good news is that it’s not too hard to envision some milestones that could cause the token to move significantly higher. For example, Robinhood listing Shiba Inu could provide a big boost. However, it wouldn’t be enough on its own to drive the coin to a price of $0.01.
The planned launch of Shibarium, a layer-2 network, could also provide a spark. Shibarium will address the congestion and high fees associated with the current Ethereum blockchain on which Shiba Inu is built.
Perhaps the biggest game-changing catalyst on the horizon for Shiba Inu is the development of games. Thus far, Shiba Inu hasn’t participated in the surging demand for gaming coins. That could change by early 2023, though.
Shiba Inu Games hired Playside Studios to develop a multiplayer collectible card game to be released on multiple platforms. The Australian video game studio claims an impressive lineup of over 50 games that it’s developed, including games for Disney, Nickelodeon, and Warner Bros. This game will only be the beginning of what could eventually become Shiba Inu’s own metaverse.
Finally — and most importantly — Shiba Inu needs time. Don’t expect the kind of multimillion-percentage return the token generated last year to happen again, especially within only 12 months.
Shiba Inu is no longer the unknown player that it was before its meteoric rise in 2021. It will likely take years for the cryptocurrency’s price to reach $0.01, if it ever hits that level.
Time isn’t automatically on Shiba Inu’s side, though. There’s also a possibility that other cryptocurrencies will gain momentum at Shiba Inu’s expense over the next few years.
A penny for your thoughts
It’s not out of the question that Shiba Inu could soar 36,000% given a booming crypto market, major catalysts, and enough time. However, the possibility that it could happen doesn’t mean there’s a high probability that it will happen.
Even if Shiba Inu never reaches a predefined threshold in the future, though, what really matters is the risk-return proposition that it offers now. Different investors will have different views on how attractive Shiba Inu is on this front. But it’s a much more critical question to ponder than whether or not the digital token will ever be worth a penny.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.