Shiba Inu (SHIB) has become one of the most talked-about cryptocurrencies, capturing the imagination of its holders with the dream of a $0.01 price target. With the current price at $0.00001906, reaching this milestone would require a massive increase of about 52,365%. While this may seem daunting, the path to $0.01 is not entirely out of reach if the Shiba Inu community and developers leverage a key strategy: reducing the circulating supply of the token through aggressive token burning.
Market capitalization challenges
To understand the scale of the challenge, consider the market cap needed for Shiba Inu to reach $0.01 with the current supply of 589.26 trillion tokens. At this price point, the market cap would need to skyrocket to an extraordinary $5.89 trillion. For comparison, this figure is more than double the current valuation of the global cryptocurrency market, which is about $2.61 trillion.
Currently, Shiba Inu has a market capitalization of $11.21 billion, ranking 13th on CoinMarketCap. A leap to $5.89 trillion is considered unrealistic due to the excessively large market cap needed. However, by focusing on reducing supply, Shiba Inu could make significant progress towards achieving the $0.01 dream without relying on unattainable market cap growth.
Token Burns: The Key to Sustainable Growth
Token burning is a key strategy to address the supply issue. Token burning involves permanently removing tokens from circulation by sending them to a dead wallet. This reduction in circulating supply can increase the price per token without the need for a corresponding increase in market cap.
From an initial supply of 1 trillion tokens, over 410.73 trillion SHIB have been burned, leaving a circulating supply of approximately 589.26 trillion. While this is a significant reduction, it is still far from making $0.01 a realistic target under current conditions.
The role of Shibarium in burning
Welcome to Shibarium, Shiba Inu's Layer 2 blockchain solution. Launched last year, Shibarium is designed to address scalability and cost-effectiveness issues while incorporating mechanisms that support SHIB burning initiatives. A portion of the transaction fees generated on Shibarium is allocated to burn SHIB.
Since its launch, Shibarium has facilitated the burning of over 55 billion SHIB. This figure is expected to rise as network activity grows. The more transactions conducted on Shibarium, the more SHIB tokens are burned, gradually reducing the circulating supply.
How much needs to be burned?
To reach $0.01, the supply of Shiba Inu will need to decrease significantly. Assuming a more feasible market cap target of $100 billion (close to the current market cap of leading cryptocurrencies like Bitcoin and Ethereum during a bull run), the circulating supply would need to be reduced to around 10 trillion tokens. This would require burning over 98% of the current circulating supply.
While this may seem extreme, a consistent and robust burn mechanism, combined with utility and increasing network adoption, could help mitigate over the years.
Potential catalysts for price growth
Increase network usage: As Shibarium scales, higher trading volumes will lead to more SHIB being burned.
DeFi Growth and Utility: Expanding SHIB use cases in decentralized finance (DeFi), gaming, and NFTs could attract more users to the ecosystem.
Community involvement: The Shiba Inu community, known for its enthusiasm and loyalty, plays a crucial role in promoting and participating in dog burn initiatives.
Challenges ahead
Although the burning strategy offers a promising path, it is not without challenges. Maintaining a high burn rate requires continuous network activity and adoption. Furthermore, market sentiment and macroeconomic factors can significantly impact the price trajectory of SHIB.
Conclusion: The path to $0.01
Achieving $0.01 for Shiba Inu is a challenging yet attainable goal if the community and developers remain committed to reducing circulating supply through strong burning. With the help of Shibarium and other ecosystem developments, SHIB can get closer to this milestone, turning what once seemed like a fanciful dream into a realistic ambition. Currently, all eyes are on the burn rate of Shibarium and broader adoption of the Shiba Inu ecosystem.
