Once regarded as merely a meme coin, Shiba Inu ($SHIB) has evolved into one of the most talked-about cryptocurrencies. With an impressive market cap of $15 billion and a staggering 6,220% surge in the burn rate, the SHIB community is abuzz with speculation. But one puzzling question remains: Could burning 99% of SHIB's supply propel its price to $1? Or could such a strategy backfire, potentially undermining the project's future?

Here are the details of the latest insights, excerpted from Shytoshi Kusama, the lead developer of Shiba Inu.

💥 The potential to burn SHIB to $1

Shiba Inu's token burning mechanism has attracted significant attention. Of the initial 999 trillion tokens, 410 trillion have been burned, leaving 541 trillion in circulation. Recently, an unprecedented increase in the burn rate has fueled hopes that a significant supply reduction could cause a price explosion.

However, when asked if burning 99% could drive SHIB to the desirable price of $1, Shytoshi Kusama provided a nuanced answer:

"It's not just about burning tokens," Kusama explains. While technically, reducing supply is a step toward higher prices, Kusama emphasizes the importance of balancing token burning with ecosystem development to achieve sustainable price increases.

⚠️ The risks of excessive burning

While the concept of drastically cutting SHIB's supply seems appealing, Kusama warns against excessive burning. Here are the reasons:

  1. Expensive tokens could slow down the burning process in the future
    If SHIB's price skyrockets due to burning, fewer users may be able to buy and hold the tokens. This could inadvertently reduce the community's ability to sustain the burning process over time.

  2. The stability of the ecosystem is at risk
    Excessive burning could hinder ecosystem development. For SHIB to thrive, its utility must expand along with price increases. Excessive burning could limit liquidity, hinder adoption, and obstruct real-world use cases.

Kusama emphasizes the need for strategic burning, arguing that symbolic cuts should complement rather than overshadow SHIB's ecosystem development efforts.

🔥 Shibarium: A game-changing solution

The Shibarium layer-2 solution is foundational to Shiba Inu's long-term strategy. Designed to address scalability and cost issues, Shibarium has achieved significant milestones:

  • 8 million blocks have been processed

  • 400 million transactions have been completed

  • Lower transaction fees and faster processing times

By improving scalability, Shibarium is positioning SHIB as a viable candidate for real-world applications, from decentralized finance (DeFi) to gaming and beyond. Kusama believes that Shibarium's success will help drive organic demand, combined with measured burning, which could steadily enhance SHIB's price.

🌐 The road ahead for SHIB

For Shiba Inu to reach the price of $1, the project must achieve a delicate balance:

  1. Strategic token burning
    Controlled burning that aligns with key ecosystem milestones is essential. Community-driven initiatives like SHIB Superburn Sundays and other burning events can continue to reduce supply without destabilizing the market.

  2. Improvements expanding the ecosystem
    such asShibarium, SHIB: The Metaverse and ShibaSwap provide the necessary platform for utility-driven adoption. These tools empower users, attract new participants, and reinforce SHIB's position as a decentralized project.

  3. Community involvement
    SHIB's strength lies in its passionate community. By leveraging community-driven projects and encouraging widespread participation, Shiba Inu can adapt to changing market dynamics.

🚀 Can SHIB reach $1?

While cutting the supply by 99% is a powerful move, it is not a comprehensive solution. As Kusama wisely pointed out, burning alone cannot sustain growth. Instead, the potential of SHIB lies in a combination of controlled burning, ecosystem innovation, and community-driven momentum.

Currently, SHIB holders can take pride in the project's progress and remain optimistic about its long-term prospects. With the success of Shibarium, ongoing burning, and a focus on creating real utility, the dream of seeing SHIB at $1 may not be as far-fetched as it once was.