Let’s explore the potential timeline for Shiba Inu to reach $0.005 and $0.025 if the Shibarium blockchain burns 100 trillion SHIB tokens annually. Shiba Inu’s quest to replicate its incredible surge in value, turning $12 into $1 million in 2021, has encountered a significant obstacle in the form of its circulating supply. The price surge from 2020 to 2021 was propelled by various factors, including increased demand and a bullish market.
However, one crucial factor that contributed to this surge was Shiba Inu’s low market capitalization, which was a mere $11,359 in January 2021 according to CoinGecko. This low market cap indicated room for growth, and as a result, the valuation skyrocketed to $36 billion in October 2021 when SHIB reached an all-time high above $0.00008. At this valuation, it became much more challenging for the token to continue its upward momentum. To achieve a similar price trend, Shiba Inu needs to reduce its circulating supply and create space for further growth.
To address this issue, the Shiba Inu burn campaign was launched, with Shibarium, the ecosystem’s layer-2 scaling solution, supporting this initiative by burning SHIB tokens using a portion of its gas fees. However, despite the community’s efforts, there has been a lack of significant progress in terms of community adoption.
If Shibarium burns 100 trillion SHIB tokens annually, the circulating supply of Shiba Inu would be significantly reduced. Since its launch in August, Shibarium has already burned over 56 billion SHIB tokens. The development team aims to transition to an automatic burn model and urges the community to increase their usage of Shibarium and its associated projects to enhance the burn process.
Assuming increased adoption leads to substantially higher burns, there have been discussions about a target of burning 100 trillion SHIB tokens per year. If this goal is achieved, how long would it take for SHIB to reach price targets like $0.005 or $0.025?
Currently, Shiba Inu has a total supply of 589,534,086,491,242 (589T) SHIB tokens. Burning 100 trillion tokens annually starting in 2025 would decrease the circulating supply to 39 trillion by 2030, with a total of 550 trillion tokens removed. With a circulating supply of 39 trillion, a price of $0.005 would give SHIB a market cap of $195 billion, which is a feasible target given sufficient demand. In summary, if Shiba Inu can burn 100 trillion coins per year, it can easily reach $0.005 by 2030.
By 2031, another 38 trillion tokens would have been burned, leaving the circulating supply at 1 trillion. If Shiba Inu achieves a circulating supply of 1 trillion tokens by 2031, it would have a market cap of $25 billion at a price of $0.025. While this market cap is highly possible, the burning target may not be entirely achievable.
In a previous report, The Crypto Basic stated that analysts at crypto exchange Changelly expect Shiba Inu to reach $0.005 by 2040 and $0.025 by June 2050. However, these projections are speculative and should not be regarded as investment advice.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.