Understanding Token Burning: Token burning is the process of permanently removing a number of tokens from circulation, reducing supply and creating scarcity. This can increase the value of the token if demand remains the same or increases.
Shiba Inu and its huge supply: At launch, Shiba Inu had a huge supply of 1 quadrillion tokens. Despite attempts to burn the supply, there are still hundreds of trillions of tokens in circulation, keeping the price of each token very low.
Why burn SHIB tokens?
Reduce supply, creating scarcity.
Increase in value: As supply decreases while demand remains or increases, token prices have the potential to skyrocket.
Potential Profits: Many investors believe that token burning is the optimal way to grow and earn huge profits in the future.
Ways SHIB is being burned:
Community Voluntary Token Burning: Investors burn their tokens to help reduce supply, while transaction fees on ShibaSwap also contribute to this.
Planned Burn Programs: Implemented through strategic partners within the Shiba Inu ecosystem.
Large-scale token burn events: Organized by influencers, encouraging the community to burn tokens en masse to quickly reduce supply.
Can SHIB hit $1?
Supply and Market Cap: With the current supply, it is extremely difficult for SHIB to reach $1 without a significant reduction in circulating tokens.
Token burn rate: The current burn rate is not fast enough to drastically reduce supply in the short term.
Market Demand: For SHIB price to increase, demand must remain stable or increase, which depends on the development, application and expansion of utility in the ecosystem.
While reaching $1 remains a huge challenge, if the token burn rate is accelerated and demand continues to rise, the path to that milestone could still be feasible in the future.
