Shiba Inu (SHIB) has had a historic performance during the 2021 bull run. The asset’s price surged by millions of percentage points in just a few months after its launch. Early investors made millions in profits, cementing the project’s reputation as a millionaire maker. There are several factors behind SHIB’s stellar performance in 2021.
Why will SHIB be successful in 2021?
First, the market is in a bullish period. Most of the important cryptocurrency projects have hit new all-time highs, which paves the way for SHIB.
Secondly, the price of Shiba Inu (SHIB) has risen significantly after suffering a severe burn in 2021. At launch, half of the project’s supply was gifted to Ethereum co-founder Vitalik Buterin.
Buterin decided to destroy 90% of the tokens and donate 10% to charity. As a result of Buterin’s actions, the supply of the asset was significantly reduced, which pushed up the price of the asset.
While SHIB occasionally suffers losses, they pale in comparison to Buterin’s losses in 2021.
Can the assets be burned to the extreme?
Reaching 10 cents ($0.10) is an important goal for the Shiba Inu (SHIB) community. While the goal is ambitious, achieving it will not be easy. One of the biggest obstacles for SHIB to reach $0.10 is the project’s high token supply of 589 trillion.
If the price per token reaches $0.10, the market cap of the project will be in the trillions of dollars, which is unrealistic.
In order for SHIB to reach $0.10, it will need to destroy a large portion of its supply, similar to what Buterin did in 2021.
The Shiba Inu (SHIB) team is reportedly working on a new burn mechanism that will reportedly destroy trillions of tokens per year. If the team is able to drastically reduce the project’s supply, a $0.10 supply could become a reality.
