In the ever-evolving landscape of cryptocurrencies, Shiba Inu (SHIB) enthusiasts are keeping a keen eye on the potential game-changer: Shibarium burns. As the crypto community embraces Shibarium’s innovative layer-2 network, the question looms large: could these burns propel Shiba Inu to unprecedented heights, with price projections soaring into the realms of $0.01 and beyond?
Shibarium, the much-anticipated layer-2 network for Shiba Inu, made its debut on the mainnet in August 2023, sparking waves of excitement among SHIB aficionados. However, it wasn’t until late November of the same year that Shibarium began to witness a surge in adoption, processing over 20 million transactions from December 1st to 3rd alone.
One of the most awaited utilities of Shibarium was its potential to facilitate Shiba Inu burns, a prospect that held significant promise for the community. With Shibarium’s documentation outlining a burn mechanism wherein 70% of its base transaction fee would be used to incinerate SHIB tokens, anticipation reached a fever pitch.
Yet, the actualization of Shibarium burns didn’t materialize until early December 2023, marked by the incineration of 8.24 billion SHIB worth $75,241 in the first burn event. Subsequent burns followed suit, with Shibarium torching a total of 33.8 billion tokens across four transactions by December 23rd.
Fast forward to the current year, and Shibarium burns continue to make headlines, with 9.93 billion SHIB going up in smoke from Shibarium fees on January 9th. As the frequency of burns increases, the Shibarium development team is exploring the transition to an automated burn mechanism, signaling a potentially transformative phase for Shiba Inu’s ecosystem.
Central to the fervor surrounding Shibarium burns is the pressing need to reduce SHIB’s staggering supply, currently standing at a whopping 581.2 trillion tokens. Many attribute SHIB’s struggles to achieve significant rallies to this massive supply, underscoring the importance of the burn campaign.
The historical precedent set by Vitalik Buterin’s burn of 410 trillion tokens in May 2021 serves as a poignant reminder of the impact burns can have on SHIB’s price dynamics. Notably, SHIB reached its all-time high of $0.00008845 shortly after Buterin’s burn, showcasing the undeniable influence of supply reduction on price appreciation.
Looking ahead, proponents envision a future where Shibarium burns become a formidable force, potentially torching trillions of tokens on a monthly basis. If Shibarium were to burn 9 trillion tokens per month, the implications for Shiba Inu’s price trajectory would be profound.
At this burn rate, an annual incineration of 108 trillion tokens could effectively halve SHIB’s supply to 290.5 trillion tokens in less than three years. To maintain a market cap of $5.3 billion at this reduced supply, SHIB’s price would need to surge to $0.0000183.
With each passing year of burns, the supply of SHIB could dwindle further, potentially reaching 182.5 trillion tokens after another year of intense burn activity. At this supply level, achieving a market cap of $5.3 billion would propel Shiba Inu’s price to $0.0000293 within four years.
However, to reach loftier milestones such as $0.001 or $0.01, the path forward becomes increasingly challenging. With SHIB’s peak market cap of $43.5 billion in May 2021, the token would trade at $0.00024 with a circulating supply of 182.5 trillion tokens. Achieving $0.001 or $0.01 would necessitate market caps of $182 billion and $1.82 trillion, respectively.
As Shiba Inu currently hovers around $0.00000907, realizing a 10,925% surge to $0.001 and a staggering 110,153% leap to $0.01 remains a formidable task. While there are no guarantees in the volatile world of cryptocurrencies, these projections offer valuable insights into the requirements for such monumental price movements.
In conclusion, Shibarium burns stand poised to reshape the trajectory of Shiba Inu’s price, offering a glimmer of hope for enthusiasts eager to see SHIB reach unprecedented heights in the crypto sphere.
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