PEPE Coin (PEPE) and Shiba Inu (SHIB) are two of the most widely discussed meme cryptocurrencies. While their communities hope to see these tokens climb to $1, a closer look reveals that this objective is unrealistic. However, this does not imply that these meme currencies have no profit potential. Let’s look at why hitting $1 for PEPE and SHIB is practically impossible and how investors can still profit.
Why PEPE Coin May Never Reach $1
The token supply is too large
PEPE has a remarkable total supply of 420.69 trillion tokens. To reach $1 per token, PEPE’s market capitalization must exceed $420 trillion. To put this in perspective:
- The worldwide cryptocurrency industry is valued at over $1.5 trillion (as of 2024).
- The world’s overall GDP is around $105 trillion.
- PEPE exceeding these levels is unrealistic—even for the most optimistic investor.
A lack of utility and use cases.
PEPE is largely a meme coin, as opposed to cryptocurrencies such as Ethereum (ETH) or Solana (SOL), which power DeFi, smart contracts, and NFTs. Its price is heavily influenced by hype, speculative trading, and social media buzz. Without a realistic use case to fuel long-term growth, PEPE is unlikely to reach exorbitant price increases. Market Competition. Among meme coins
PEPE is not the only meme coin competing for attention. Established tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) currently dominate the market. Newer coins, such as Floki Inu and Baby Doge, contribute to the rivalry, dividing investor attention. Maintaining pace in such a competitive market presents a big difficulty.
Why Shiba Inu (SHIB) Won’t Reach $1
Huge Supply Issue
Shiba Inu currently has a circulating supply of 589.3 trillion tokens. To achieve $1 per token, SHIB’s market capitalization would need to reach $589 trillion—a figure significantly beyond the total wealth on Earth, which was $454 trillion in 2022, according to UBS.
Token-burning efforts are too slow
The Shiba Inu community is deliberately burning tokens, removing them from circulation permanently to reduce supply and drive up prices. However, the burn rate is still too slow to have an impact:
- Over the last month, 3.7 billion SHIB tokens were burned.
- At this rate, only approximately 44 billion tokens will be consumed by 2025.
- To reach $1, 99.99998% of SHIB tokens must evaporate, leaving around 18 billion tokens.
Manipulation of Prices Without Value
Burning tokens just lowers the quantity of tokens in circulation; it doesn’t provide any real value. Even though the remaining tokens could seem “worth more,” the market capitalization as a whole stays the same. Investors should be aware of this if they want to make money only from burns.
The Opportunities and Reality of Meme Coins Going Forward
Short-term speculation and community support are the lifeblood of meme coins like PEPE and SHIB. They can nevertheless produce substantial returns during hype cycles, even though tokenomics and market constraints make it improbable that they will ever exceed $1. For instance:
In 2021, Shiba Inu produced an incredible 45,000,000% return, converting modest investments into millions during its surge.
SHIB increased 180% in 2024, demonstrating that, with the correct timing, meme currencies may still generate substantial gains.
But depending just on hype is dangerous.
Projects with practical use cases, such as asset tokenization, decentralized banking, and real-world applications, are increasingly being prioritized as the blockchain sector develops.
Investors looking for long-term success might want to look at creative ventures that provide genuine value to the market, even though meme coins like PEPE and SHIB can provide momentary excitement.
In summary, The idea of PEPE and Shiba Inu reaching $1 is alluring, but given their enormous supply and lack of use, this objective is practically unachievable. Nevertheless, during rallies fuelled by enthusiasm, both coins can potentially yield rewards. Investors should think about diversifying into utility-based tokens that provide practical solutions for long-term growth.
Disclaimer: This article is for informational purposes only and includes insights from various sources. We do not claim ownership of external content.
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