To Keep SHIB at $1, $10 Trillion USDT Must Be Printed
The idea of Shiba Inu (SHIB) reaching a value of $1 is an exciting prospect for its holders, but achieving this price point involves significant economic challenges. One potential solution often suggested is increasing liquidity through stablecoins like Tether (USDT), while another involves reducing SHIB's circulating supply.
Why $10 Trillion USDT Would Be Required
For SHIB to reach a value of $1, the total market capitalization of SHIB would need to equal or surpass its circulating supply, which currently stands at over 589 trillion tokens. To achieve a $1 price per token, the market value would need to be $589 trillion.
USDT, as a widely used stablecoin, is frequently considered a key tool for achieving liquidity in the market. However, the current circulating supply of USDT is approximately 118 billion. To push SHIB's price to $1, an astounding $10 trillion in USDT would be required. This is over 84 times the current USDT supply.
Printing $10 trillion in USDT would be an impossible feat. Such an action would lead to severe inflation, destabilizing not only USDT but also the broader cryptocurrency market. It could have disastrous effects on global financial stability, and this solution is therefore impractical.
Why Token Burning Is Not the Solution
Token burning, a concept where tokens are permanently removed from circulation, is often suggested as a means to increase the price of a cryptocurrency by reducing its supply. However, in the case of SHIB, this approach has serious limitations.
While burning tokens might reduce supply, it does not improve liquidityâthe ability to buy and sell the token easily. Liquidity is crucial in maintaining a stable market price, and reducing SHIBâs circulating supply through burning does not necessarily lead to increased trading or price stability. In fact, it could reduce liquidity by making fewer tokens available for trading, which would increase volatility rather than promote a stable price.
A More Practical Approach: Removing SHIB from Exchanges
A more effective strategy than burning would be to remove large quantities of SHIB from cryptocurrency exchanges and store them in private wallets. By doing so, the tokens would no longer be actively traded, reducing the available supply in the open market without the need for destructive measures like burning.
This withdrawal of SHIB from public trading platforms would create a natural scarcity as fewer tokens would be available for purchase. If enough SHIB holders choose to store their tokens in wallets rather than leave them on exchanges, it could have a positive effect on the price due to reduced supply, while still maintaining the overall liquidity needed to trade the token.
This approach relies on the communityâs collective decision to reduce active trading while preserving the utility and accessibility of the token. Rather than destroying tokens, which does not guarantee price appreciation, storing them in wallets helps create scarcity without sacrificing liquidity.
SUMMARY
While the dream of SHIB reaching $1 is captivating, the reality of achieving such a price is complex. Printing $10 trillion USDT is not feasible due to the economic risks involved, and token burning is not a reliable solution because it fails to improve liquidity.
The most practical way to push SHIBâs price upward is to reduce its availability on exchanges by storing large amounts of tokens in wallets. This creates natural scarcity while maintaining the liquidity needed for healthy market functioning. However, this approach requires the active participation of SHIB holders and exchanges alike.
Ultimately, the value of SHIB will depend on a variety of factors, including demand, market sentiment, and real-world utility, rather than speculative price goals.
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