The idea of meme coins like Shiba Inu and Pepe hitting $1 per coin often generates excitement, but a closer look at economic principles shows why this target is extremely unrealistic. Here’s an in-depth look at why the math doesn’t add up.
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Market Cap vs. Price: Key to Understanding Coin Valuation
The price of any cryptocurrency is determined by market cap and circulating supply through the formula:
> Price = Market Cap ÷ Circulating Supply
To reach a price of $1, Shiba Inu and Pepe would require market caps in the hundreds of trillions of dollars, dwarfing not only the total cryptocurrency market but even the global economy.
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Circulating Supply: 589.27 trillion SHIB
Market Cap for $1: $589.27 trillion
Reality Check: At a $1 price, Shiba Inu’s market cap would need to be about 230 times the current total crypto market cap, which stands around $2.5 trillion.
One-Cent Goal: Even for $SHIB to reach $0.01, it would require a market cap of $5.89 trillion—still more than double the entire crypto market. This is beyond what’s achievable in the foreseeable future.
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Pepe (PEPE) Breakdown
Circulating Supply: 420.69 trillion PEPE
Market Cap for $1: $420.69 trillion
Reality Check: Achieving a $1 price target would require a market cap about 168 times the total cryptocurrency market.
One-Cent Goal: Even reaching $0.01 would demand a market cap of $4.21 trillion, which is unrealistic given market constraints.
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Realistic Expectations for SHIB and PEPE Holders
While price increases are possible, the idea of reaching $1 or even $0.01 per coin is unrealistic due to the sheer volume of tokens in circulation. Instead of banking on improbable milestones, holders might consider more attainable targets and better understand how supply impacts price potential.
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Conclusion
Expecting $SHIB or $PEPE to hit $1 goes against basic economic principles and market limitations. Investors would benefit from focusing on achievable goals while staying mindful of how market cap and supply impact price.
Disclaimer: Cryptocurrency investments are volatile. This is not financial advice. Always conduct your own research (DYOR).
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