Key factors driving SHIB to new highs:
Looking back, a report from Coingecko revealed SHIB’s amazing returns: a $12 investment in May last year surged to $1 million in just one year, highlighting SHIB’s outstanding performance as a crypto asset, despite being on the market for just over four years. This success story has attracted the attention of many investors, and according to IntoTheBlock data, the number of SHIB addresses has climbed to 1.35 million, with more than 30,000 new addresses added this year.
Against the backdrop of the growing Shiba Inu community, market analysts have issued optimistic predictions. For example, Krao has predicted that SHIB is expected to hit $0.001, while Luis Delgado has even bolder predictions that it can reach $0.01. However, to achieve these goals, especially in the current market environment, Shiba Inu faces the challenge of a large circulating supply.
Currently, the circulating supply of Shiba Inu is as high as 583.5 trillion. If the price rises to $0.001, its market value will soar to $583 billion; if it reaches $0.01, the market value will jump to a staggering $5.83 trillion, which is extremely unrealistic in the next decade. Therefore, reducing the circulating supply becomes the key to achieving these goals.
According to Shibburn, reducing the circulating supply through token burning is a possible solution. If the circulating supply is reduced by 95%, that is, to 29.15 trillion, then a price of $0.001 will correspond to a market value of $29.15 billion, while $0.01 corresponds to a valuation of $291.5 billion, which is more feasible. However, achieving this goal requires community cooperation, as there is currently no direct control over the supply of Shiba Inu.
To this end, the ecosystem team called on token holders to contribute to token burning through second-layer solutions such as Shibarium. Shibarium can use part of SHIB's basic transaction fees for burning, thereby gradually reducing the circulating supply.
Although SHIB faces the challenge of a large circulating supply, it is still expected to achieve higher price targets through community cooperation and strategies such as token burning.
