Here's When Shiba Inu May Hit $0.005 and $0.025 If Shibarium Burns 100T SHIB per Year
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.