Shibarium’s network activity has surged by an impressive 54% this month, sparking optimism among investors that significant token burns could be on the horizon. Token burns are seen as a crucial step in reducing Shiba Inu’s massive circulating supply, which currently stands at 589 trillion SHIB tokens. Without substantial burns, it will be challenging for SHIB to achieve meaningful, long-term price growth in the market.
Currently, SHIB is trading at approximately $0.00001222, displaying a pattern of mostly sideways movement throughout the year. Despite its immense popularity and loyal community, the token’s enormous supply continues to be a major hurdle in driving up its valuation.
Shibarium, the layer-2 blockchain built on Ethereum, has been central to the ecosystem’s growth by reducing transaction costs and enhancing scalability, but its ability to facilitate burns is what many investors are counting on to boost SHIB’s market performance.
Can Burning 20 Trillion Shiba Inu Tokens Annually Push Its Price to $0.001?
Yes, burning 20 trillion tokens annually could technically push Shiba Inu to the $0.001 mark one day. However, in practice, it’s unlikely, as even Shibarium isn’t equipped to handle such a massive burn rate. Here’s an analysis of whether burning 10 trillion SHIB per year could realistically drive the price to $0.001.
The Theory: Burning 20 Trillion Tokens Annually
“The current total supply of SHIB is 589 trillion tokens. If 20 trillion tokens are burned annually, 500 trillion SHIB would be burned over 25 years. This would reduce the supply to approximately 89 trillion tokens, assuming no new SHIB are minted”.
Is it possible? The likelihood of burning 20 trillion SHIB tokens annually for 25 years is extremely low. For SHIB to reach $0.001, its market cap would need to exceed $85 billion—11 times its current value. To burn 10 trillion tokens per year, Shibarium must significantly accelerate its burning mechanism. Collaboration with third-party apps is also crucial to develop additional token-burning solutions.
Moreover, Shiba Inu developers need to explore new methods for reducing supply, rather than relying solely on Shibarium. Without meeting these requirements in the coming years, SHIB has virtually no chance of achieving the $0.001 mark.
Also Read: Dogecoin (DOGE) vs. Cardano (ADA): Which is the Better Investment for the Next 5 Years?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
