Core Insights - Shiba Inu (SHIB) has seen a significant decline of 60% in 2025, making the prospect of reaching $1 or $0.01 unrealistic due to the astronomical market cap required [1][2] - The current supply of Shiba Inu tokens stands at 589 trillion, creating a vast supply gap compared to Bitcoin's 21 million and Ethereum's 120 million [2] - To reach a market cap of $1, SHIB would need to achieve $589 trillion, which is over 130 times the value of Nvidia [2][3] Supply and Market Cap Analysis - Achieving a price of $0.01 would require a market cap of $5.89 trillion, nearly double the total market cap of all cryptocurrencies combined [3] - The supply of SHIB tokens makes it nearly impossible to reach significant price points without an unprecedented increase in market cap [2][3] Ecosystem Challenges - The Shiba Inu team launched Shibarium, a Layer-2 blockchain, in August 2023, aimed at creating a deflationary mechanism through automated token burns [4] - Initial adoption of Shibarium was promising, with up to 4 million daily transactions, but has since plummeted to only a few thousand [4][5] - The Total Value Locked (TVL) on Shibarium struggles to remain above $1 million, significantly lower than other Layer-2 solutions [5] Project Development Issues - Other projects within the Shiba Inu ecosystem, including a privacy Layer-3 blockchain and a metaverse initiative, have faced delays and lack of updates [5][6] - The Shiba Eternity gaming project has only attracted a niche audience, indicating limited engagement with the broader market [6] Deflationary Mechanism Failures - The deflationary narrative of Shiba Inu has faced severe setbacks in 2025, with weekly burn activity dropping by 96.96% [9] - As of late December, there were no token burns reported in the past 24 hours, effectively halting the deflationary strategy [9] - At the current burn rate, it would take over 521,000 years to eliminate enough tokens to justify a price of $1 [9]