A $1 SHIB Price Is an Unrealistic Scenario
Michael Gayed argues that a $1 SHIB price is economically impossible due to its massive token supply.
Shiba Inu has once again become a topic of debate following comments from Michael Gayed, who criticized forecasts suggesting the token could eventually reach $1. In his view, such predictions have no basis in economic reality and overlook fundamental principles of asset valuation.
The discussion was sparked by an analysis published by TXMC. According to the firm's calculations, if SHIB were to trade at $1, its market capitalization would reach a level completely disproportionate to the size of the global money supply. Analysts argue that such a valuation is highly unlikely given the enormous number of tokens currently in circulation.
Gayed agrees with this assessment. He believes that expectations of a $1 SHIB price are driven more by speculation than by actual market fundamentals. In his opinion, the cryptocurrency market remains heavily dependent on global liquidity conditions rather than investor sentiment alone.
The analyst points out that when access to capital becomes more limited, investors tend to reduce their exposure to the riskiest assets. Speculative investments are usually the first to suffer, and memecoins fall squarely into that category. Under such circumstances, downward pressure on prices typically increases.
TXMC reached a similar conclusion. The firm notes that setting extreme price targets for memecoins often results in valuations that are detached from reality. In SHIB’s case, even relatively small increases in the projected token price can translate into enormous market capitalization figures because of the vast supply of tokens in circulation.
Gayed also believes that the current market environment is being shaped by deteriorating financing conditions and a broader reduction in risk-taking among investors. According to him, these trends tend to appear first in the bond market before eventually spreading to cryptocurrencies.
Regulatory developments are another factor increasingly influencing the digital asset sector. Supporters of Shiba Inu point out that the token’s supply is gradually decreasing through its burn mechanism, which could support its valuation over the long term. However, this does not change the fact that memecoins remain one of the most speculative segments of the cryptocurrency market.
Just a few years ago, the digital asset industry resembled a financial Wild West, where projects could grow with little oversight or regulation. Today, the landscape looks very different. Governments around the world are introducing new rules, while regulators are paying closer attention to projects that lack clear utility or real-world use cases. If this trend continues, memecoins could face significantly greater regulatory pressure in the years ahead. For some projects, this may lead to declining investor interest and, ultimately, a gradual disappearance from the market.
