The Shiba Inu ecosystem has recently taken a significant step with the launch of the Shibarium burn portal, a move that has reinvigorated discussions about the potential for Shiba Inu (SHIB) to reach the $0.01 price target.
This new development has been eagerly awaited by the SHIB community, particularly as it introduces a mechanism designed to reduce the circulating supply of SHIB, potentially paving the way for future price increases.
Shiba Inu Burn Portal: ShibTorch’s Function and Impact
The burn portal, now operational under the name “ShibTorch,” is a key feature introduced by the Shiba Inu ecosystem team. This portal is designed to allocate a portion of the base fee from each transaction conducted on Shibarium to burn SHIB tokens, effectively removing them from circulation.
The primary goal behind ShibTorch is to address inflationary pressures within the Shiba Inu ecosystem by gradually decreasing the total supply of SHIB.
Since its launch, ShibTorch has successfully burned approximately 3.26 million SHIB tokens, marking the beginning of what the community hopes will be a sustained reduction in the overall supply.
Shiba Inu’s community enthusiasm can be seen in the surge in its burn rate. In the last 24 hours, the SHIB burn rate has risen by 1250.90% as over 28 million SHIB tokens have been burned.
To continue to achieve more substantial burns, there needs to be a significant increase in Shibarium’s adoption, as a higher volume of transactions would generate more fees, leading to greater token burns.
The Potential for Shiba Inu to Reach $0.01
The introduction of the Shibarium burn portal has sparked renewed interest in the long-term price prospects of Shiba Inu, particularly the ambitious goal of reaching $0.01. Some members of the SHIB community have speculated that if ShibTorch could burn up to 100 trillion SHIB tokens annually, it might set the stage for substantial price gains.
Currently, Shiba Inu has a circulating supply of approximately 589 trillion tokens. If the burn portal succeeds in eliminating 100 trillion tokens each year, the supply would decrease to 489 trillion tokens after one year, and 89 trillion after five years.
Even under this optimistic scenario, achieving a price of $0.01 per SHIB would be challenging. At a supply of 89 trillion tokens, Shiba Inu’s market capitalization would need to reach $890 billion, a figure that surpasses the current market cap of Ethereum, one of the most established cryptocurrencies.
However, if the burn rate remains consistent over an additional six-month period, reducing the supply to approximately 33 trillion tokens, the $0.01 price point may become more attainable. With a supply of 33 trillion tokens, a $0.01 price would result in a market capitalization of $330 billion, a figure more within the realm of possibility, though still ambitious.
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Long-Term Outlook: A Six-Year Timeline for $0.01
The data suggests that even with the maximum potential impact of the Shibarium burn portal, Shiba Inu’s journey to $0.01 would be a gradual one, likely taking several years.
If the portal consistently burns 100 trillion SHIB tokens annually, it could take until 2030 to reduce the supply to a level where the $0.01 target becomes realistic.
This timeline underscores the importance of sustained community support and continued growth in Shibarium’s adoption to achieve these long-term objectives.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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