Fans and investors of Shiba Inu (SHIB) have long pursued the price point of $0.01. The SHIB community often refers to this as the 'one cent dream'. Although SHIB has undergone an incredible journey over the past four years, the asset still struggles to gain momentum in a generally sluggish market environment. Fans and community members of SHIB continue to drive the asset's popularity and demand. How will Shiba Inu achieve the dream of one cent?
One of the biggest obstacles to SHIB's price rise is its enormous circulating supply. Currently, there are about 589 trillion SHIB tokens in circulation. If the asset reaches the price level of $0.01 with the current supply, the project's market capitalization would rise to $5.89 trillion. This figure is extremely unrealistic, as it is higher than the market capitalization of large tech companies like Apple, Microsoft, and Nvidia.
For SHIB to reach the price point of $0.01, the only realistic way is for the project to somehow reduce its circulating supply. One of the biggest catalysts for SHIB's astonishing rise in 2021 was Vitalik Buterin's massive token burn. The Ethereum co-founder received half of the supply when SHIB launched. Buterin decided to burn 90% of the tokens he received. His actions led to a significant decrease in supply while demand remained high. Low supply and high demand resulted in a substantial price increase. Since its launch in August 2020, SHIB's price rose by millions of percentage points until it reached an all-time high in October 2021.
According to reports, the Shiba Inu (SHIB) team is researching a new burn mechanism. It is reported that this new mechanism could potentially burn trillions of tokens each year. This burn mechanism is expected to help SHIB quickly achieve the dream of 'one cent'. The team has not yet announced an official release date for the burn mechanism, nor have they clarified how to burn more tokens.
