Can Shiba Inu Hit $1 if 90% of SHIB Supply is Burned?

Burning a significant quantity of Shiba Inu (SHIB) might have a massive impact on the price of the token in the long term.

Shiba Inu remains one of the major wonders of the crypto world, judging by its success since inception, as it ranks among the top 20 cryptocurrencies by market cap.

However, its challenges remain obvious, as the digital currency, despite boasting an energetic community, is unlikely to achieve its most ambitious price targets anytime soon unless something drastic happens.

Currently, Shiba Inu’s price and market capitalization are in recovery mode, shifting upwards by 2.36% to $0.000009863 and $5,815,405,995, respectively. However, the trading volume is yet to catch up as it remains down by 41% to $196,928,205.

Burning 90% of Shiba Inu Supply: Possible Implications

At the moment, Shiba Inu boasts of a circulating supply of 589,300,097,886,121 (589.3 trillion) SHIB, and hitting the price target of $1, for instance, will bring the market capitalization of the token to  $589,300,097,886,121 ($589.3 trillion), an unrealistic figure.

Burning 90% of this supply can change the narrative, as this will shrink the figure to 58,930,009,788,612 (58.9 trillion) SHIB. At $1, the valuation this shrunken supply will bring is also unrealistic. 

Should the perfect burning system emerge, chances are this mega supply reduction will take decades before any significant result emerges. In all, reducing the supply of Shiba Inu might boost the price of the asset, but not enough as many in the community might wish for.

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To see the drastic change that might help Shiba Inu achieve at least a $0.01 price in the long term, a 99% drop in supply might be necessary. A 99% decrease would bring the supply to 5.89 trillion. This would bring SHIB’s market cap to $58.9 billion at a price of $0.01, a realistic and attainable figure.

The Shibarium Burn Portal Boost

As a decentralized protocol, many users own Shiba Inu from different parts of the world. Under the current system, burning the cryptocurrency entails manually sending the designated SHIB meant for burning to the dead wallet.

This trend is set to change with the Shibarium team looking to implement an automated burn mechanism on the network and further bolster token incineration, further contributing to the deflation.

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• Source: https://thecryptobasic.com/2024/01/05/can-shiba-inu-hit-1-if-90-of-shib-supply-is-burned/?utm_source=rss&utm_medium=rss&utm_campaign=can-shiba-inu-hit-1-if-90-of-shib-supply-is-burned