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Let’s find out how long it might take for Shiba Inu to hit $0.005 and $0.025 if the ecosystem layer-2 blockchain Shibarium burns 100 trillion SHIB tokens a year.
Shiba Inu’s attempt to replicate its past monumental upsurge, which turned $12 to $1 million in 2021, has met a massive roadblock in the form of its circulating supply. SHIB was able to engineer the price run from 2020 to 2021 due to a confluence of multiple factors, such as increased demand and bullish market momentum.
Shiba Inu Faces a Roadblock
However, one important factor that allowed this upsurge to materialize was its low market cap, which stood at a mere $11,359 in January 2021, according to CoinGecko data. Such a low market capitalization showed that SHIB had room for growth, with this growth resulting in a surge in valuation to $36 billion in October 2021.
At this valuation, which came up when SHIB hit the ATH above $0.00008, it was much more difficult for the canine-themed token to record further upside swings. Consequently, for Shiba Inu to see a similar price uptrend, its circulating supply needs to be trimmed down, allowing room for additional growth.
This theory birthed the Shiba Inu burn campaign, which the community has continued to champion. Shibarium, the ecosystem’s layer-2 scaling solution, is designed to support this campaign by incinerating SHIB with a portion of its gas fees. However, a slowdown in community adoption has not yielded the desired results.
What if Shibarium Burns 100T SHIB a Year?
So far, Shibarium has burned over 56 billion SHIB tokens since its launch last August, with the development team looking to transition from a manual to an automatic burn model. There have also been rallying calls for increased community usage of Shibarium and projects on it to bolster the burn process.
Should such increased adoption occur, projections of substantially higher burns have emerged. For instance, the 100 trillion SHIB annual burn target has made it to community discussions. However, if Shibarium ever achieves this feat, how long before SHIB reaches lofty targets like $0.005 or $0.025?
Shiba Inu’s total supply stands at 589,534,086,491,242 (589T) SHIB. Incinerating 100 trillion tokens a year from 2025 would bring Shiba Inu’s circulating supply to 39 trillion in 2030, with 550 trillion tokens removed. At the 39 trillion circulating supply, a price of $0.005 would bring SHIB’s market cap to $195 billion, a feasible target in an environment with enough demand. In Summary, if Shiba Inu is able to burn 100T coins per year, SHIB can easily reach $0.005 by 2030.
In 2031, the burning exercise would have removed 38 trillion more tokens, leaving the circulating supply at 1 trillion. If Shiba Inu has a circulating supply of 1 trillion tokens by 2031, it will hold a market cap of $25 billion at a price of $0.025. While this market cap is highly possible, the burning target might not be entirely feasible.
In our previous articles, The Crypto Basic confirmed in a report last month that analysts at crypto exchange Changelly expect Shiba Inu to reach $0.005 by 2040 and then clinch the audacious $0.025 target in June 2050. However, these projections remain highly speculative and should not be construed as investment advice.