Shibarium’s network activity has soared by 54% this month making investors believe that massive burns are on the cards soon. The dog-themed token is currently hovering around the $0.00001325 mark and is mostly trading sideways this year. Shiba Inu has a circulating supply of 589 trillion SHIB tokens and the majority needs to be removed from circulation to make its price sustainably scale up in the indices.
Also Read: How Much of the World’s Population Owns Shiba Inu (SHIB)?
SHIB: Burning 20 Trillion Shiba Inu Tokens a Year Can Make Its Price Reach $0.001?
Technically, yes. Burning 20 trillion tokens a year can make Shiba Inu reach the $0.001 mark someday. Theoretically, no. Sending that many tokens a year can be challenging as even Shibarium is not capable of handling that much capacity. Here’s a breakdown of whether yearly burns of 10 trillion SHIB could drive the price to $0.001.
The Hypothesis: 20 Trillion Tokens Burned Per Year
- Current total supply of SHIB: 589 trillion tokens.
- If 20 trillion tokens are burned per year, that equals 500 trillion SHIB burned after 25 years.
- Over 25 years, that would remove 500 trillion SHIB, nearly and almost the entire current supply.
The result: Only around 89 trillion Shiba Inu tokens would remain (if no new SHIB are minted).
Also Read: Shiba Inu: Shibarium Usage Jumps 54%, Is SHIB Ready for a Liftoff?
But can this happen? The chances of burning 20 trillion SHIB tokens for 25 years remain slim. Its market cap would also reach more than $85 billion which is 11 times its current valuation. To burn 10 trillion tokens a year, Shibarium needs to ramp up its burning mechanism and make the process faster. Even third-party apps need to join hands in providing solutions to burn the tokens.
Shiba Inu developers must also find new ways to burn the supply and not depend only on Shibarium. If all of these are not met in the next few years, then SHIB has zero chance of reaching $0.001.
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