It is no longer news that Shibarium is finally live after its initial launch, which was hampered by an unexpected spike in traffic. Before Shibarium’s launch, the network technology was poised to be a turning point in Shiba Inu’s ecosystem.
One of its most talked about features was its burn capability, which seemed to have started playing out. Notably, our previous report revealed a total of 5.7 billion incinerated SHIB coins in August within a few days of Shibarium’s launch.
With Shibarium’s presence, SHIB enthusiasts seemed renewed with hope as they anticipated price surges around $0.001 and $0.0001 price levels. However, to make this happen, there is a need for a massive Shiba Inu burn, one similar to Vitalik Buterin’s burn action of May 2021. We all know how it paid off eventually.
111 Trillion SHIB Burn With Shibarium: Any Chance?
As earlier mentioned, Shibarium’s presence in late August saw 5.7 billion SHIB tokens removed from circulation. However, a more reasonable number of Shiba Inu (SHIB) is expected to be incarcerated by the end of this month, with Shibarium operating perfectly.
So, considering the hypothetical burn potential shared in March 2022 by Queenie, a renowned Shiba Inu enthusiast, Shibarium can burn 111 trillion SHIB per year.
Queenie also hinted that a 1% transaction charge for SHIB burns in Shibarium and ShibaSwap 2.0 would incinerate 22 trillion SHIB tokens annually.
Anyone can run hypotheticals from current data 🙂
— Queenie (@Web3Queenie) March 31, 2022
I did this just now: pic.twitter.com/iSeKJeB9V9
Likely Timeline For SHIB to Hit $0.001 Or $0.0001 with 100 Trillion Annual Burn Rate
Among the whopping figures mentioned earlier, we are picking a possible annual burn of 100 trillion SHIB to estimate the timeline for Shiba Inu prices such as $0.001 or $0.0001.
According to SHIB’s data on CoinGecko, the digital asset price at the time of reporting is $0.00000757. Achieving price targets of $0.001 and $0.0001 would imply a surge of 13,110% and 1,220%, respectively.
An annual burn rate of 100 trillion SHIB tokens implies it would take 4.5 years to destroy 450 trillion SHIB coins, a better timeline than the impossible 8000 years with a 5.7 billion monthly SHIB burn or the 4000 years with the usual daily burn rate.
Incinerating 450 trillion SHIB will reduce SHIB’s 589 trillion circulating supply to about 139 trillion. If this projected annual burn rate plays out, it would take SHIB about four or 5 years to reach $0.001 or $0.0001, respectively. But these prices are relatively impossible if the current burn rate is the same in the next 4 to 5 years.
Note: While this insight might make investing in Shiba Inu appear attractive, research remains crucial before every investment. So, don’t take our estimates as financial advice.
Speculation on Timeline For Shibarium’s Full Burn Impact
The usual conviction about SHIB’s burn rate following the integration of Shibarium has been more like an instant impact. However, Lucie, a renowned Shiba Inu development team member, recently hinted at a possible timeline for a potential Shibarium’s full effect.
According to one of her recent tweets, Lucie seemed to clarify what the Shibarium’s burn project appears to be all about. Lucie noted that by merely using Shibarium, one could be contributing to SHIB tokens burn.
In addition, Lucie noted that the low gas fee on Shibarium was an intentional plan to attract more users to Shibarium. In this way, the burn project will be a communal scheme and not just for a selected few.
Concluding her writeup, Lucie noted that the whole SHIB incineration project is a long-term project, and the Shibarium maximum impact will only play out after 8 to 12 months.
STAY INFORMED
— 𝐋𝐔𝐂𝐈𝐄 | Summer of Shibarium (@LucieSHIB) August 30, 2023
Just wanted to give you a friendly heads up about some influencers making big promises about $SHIB burns.
There are no keys to the $SHIB supply. Completely decentralized.
Whatever gets burned is simply a result of people buying and using #Shibarium.… pic.twitter.com/X35w1lPkPq
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