Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer,” has done well since its launch in 2020, gathering a passionate community and a determined team pushing its utility past other regular meme coins.
However, its massive circulating supply of 589.2 trillion tokens has often been cited as a barrier to significant price increases. Shibarium, the layer-2 network launched in August 2023 promises to address this issue through consistent token burns.
Read Also: Shibarium Burns Billions of Shiba Inu (SHIB) Despite Inaccessible Supply. Here’s how
Shibarium Burns Give Hope for Shiba Inu (SHIB)?
The excitement surrounding Shibarium lies in its ability to significantly reduce the SHIB token supply. Initially, transaction fees on the network were set to burn 70%, but actual burns only began in December 2023. Since then, over 43 billion SHIB tokens have been destroyed.
This renewed focus on burns has reignited discussions about Shiba Inu’s potential price trajectory. Proponents believe that consistent, large-scale burns could pave the way for the meme coin to reach previously unimaginable heights, like $0.01 or even $0.001. With plans for an automated burn mechanism in the pipeline, these targets seem closer than ever.
Could Burning Be the Path to SHIB Success?
Burning 9 trillion SHIB tokens per month translates to an annual reduction of 108 trillion. At this rate, the burns will eliminate half of the current supply within three years. However, for Shiba Inu to maintain its current market capitalization of around $5.3 billion with a reduced supply of 290.5 trillion tokens, its price would need to rise to $0.0000183.
Further burns could push the price even higher. Burning an additional 108 trillion tokens the following year would leave 182.5 trillion in circulation. This reduced supply, with a $5.3 billion market cap, would translate to a $0.0000293 SHIB price.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Shibarium-Powered SHIB Burn Encounters Delay. Here’s Detail From Shiba Inu Team
It’s important to remember that market capitalization can fluctuate. If Shiba Inu (SHIB) were to reach its peak market cap of $43.5 billion again, the price with a supply of 182.5 trillion tokens would be $0.00024, significantly more than its all-time high of $0.00008845. To reach $0.001 would require a market cap of $182 billion, and $0.01 would necessitate a staggering $1.82 trillion market cap.
SHIB is trading at $0.000009086, up 0.64% in 24 hours. The meme coin still has a long road to reach these targets, but aggressive burns could help it go far.
Follow us on Twitter, Facebook, Telegram, and Google News
