It is no longer a debatable topic that Shiba Inu’s enormous supply pool has been one of its main drawbacks in its few years of existence.
For context, Shiba Inu (SHIB) boasts a circulating coin supply of about 589.3 trillion tokens despite several efforts by the development team to reduce its supply pool via several burning schemes.
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Topping the list of burning mechanisms introduced by the Shiba Inu’s development team to curb the meme coin’s platform supply predicament is the Shibarium, a Layer-2 network scaling solution.
While the Shibarium burns SHIB via manual operations powered by gas charges on the network, the development team has revealed plans for an automated burn mechanism soon.
SHIB’s Burn Statistics
According to Shibburn, the SHIB burn rate is currently up by 1,914.19%, having incinerated 102,772,843 SHIB in the past 24 hours. The total amount of incinerated SHIB from its initial supply was 410,708,755,246,925 (410.7T) SHIB.
While the above statistics might appear impressive, it is worth noting that Vitalik Buterin, Ethereum’s co-founder, was solely responsible for burning about 410 trillion SHIB in 2021, resulting in the rally that saw Shiba Inu attain a $0.00008616 all-time high (ATH).
The above says a lot about the need for an improved and more intentional burning technique to cut Shiba Inu’s massive supply.
Burning 100 Trillion SHIB Yearly – Price Implications
With an automated burning mechanism in sight on Shibarium, let’s imagine that the technology eventually gets to incinerate 100 trillion SHIB yearly; what potential impacts would this burn rate have on price?
A yearly 100 trillion burn rate will require five years to incinerate 500 trillion SHIB. The remaining 89.3 trillion tokens, at $0.01 per coin, will imply a market cap of about $893 billion.
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In a real sense, a Shiba Inu market cap of about $893 billon appears incredible because the entire crypto market cap is worth an estimated $2.35 trillion. Bitcoin (BTC), the number one cryptocurrency, contributed $1.19 trillion, representing 50.53% of the global market cap. On the other hand, stablecoins made up approximately 6% of the entire crypto market cap.
With the above in mind, it becomes glaring that SHIB to $0.01 appears unlikely to play out anytime soon. However, we might be forced to hold on to Changelly, ChatGPT, or Bard’s predictions.
Changelly predicted that SHIB might attain $0.01 in 2050, Bard projected 2035 as a potential timeline for SHIB to hit $0.01, while ChatGPT says $0.01 will happen in 2028.
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