Aaron Arnold, the founder of Altcoin Daily, has asserted that hoping for a one-cent Shiba Inu price as early as next year is a pipe dream.
Arnold expressed this perspective on X over the weekend. In his post, he cautioned crypto market participants to temper their expectations for various crypto assets with reality.
Specifically, Arnold highlighted that the foremost mistake beginners make in the crypto market is poorly estimating price forecasts without the asset’s market cap. He stressed that this miscalculation could derail their crypto endeavors.
He reinforced his point by citing an example involving Shiba Inu. Arnold mentioned that he had heard members of the crypto community discussing their purchases of SHIB, believing that if the price reached $0.01 next year, they would become millionaires.
Notably, aside from beginners in the crypto space, several prominent market watchers have argued for Shiba Inu’s potential to surge even beyond $0.01. For instance, in June, Jason Williams, a widely followed Bitcoin author, argued that SHIB could attain $0.05 by next year.
However, according to Arnold, this is an overestimation of Shiba Inu’s prospects for this bull season. He emphasized that it is “literally” impossible for Shiba Inu to reach $0.01 next year, citing market cap implications.
“Learn how to value coins in market cap versus price,” he cautioned.
Shiba Inu Market Cap at $0.01
Currently, Shiba Inu has a market value of $0.00001845 and a circulating supply of approximately 589.5 trillion tokens. At a price of $0.01, its market cap would soar to $5.895 trillion.
For context, this resulting valuation at the $0.01 price point is 541 times larger than Shiba Inu’s current market cap of $10.876 billion. In other words, the meme coin would need to experience astronomical growth of 54,100% from its current price of $0.00001845 to reach $0.01 by next year.
Essentially, Arnold aims to stress that anticipating this level of growth for a crypto asset already valued above $10 billion within a one-year timeframe is an unrealistic expectation.
Notably, in the post-halving run of the last cycle, Shiba Inu rallied by 884,400%. Despite this significant surge, Shiba Inu’s market cap peaked at around $45 billion in October 2021.
Currently, the meme coin holds a valuation in the billions, and climbing higher in rank will be more challenging compared to when it had a market cap of only a few thousand dollars and fewer holders.
Shiba Inu Team Says $0.01 Possible
Some members of the Shiba Inu development team, like its content specialist Lucie, have predicted that SHIB could reach $0.01. However, Lucie did not specify a timeline for next year; she believes it is an attainable goal for Shiba Inu in the future.