Shibarium's network activity soared by 54% this month, which makes investors believe that large-scale burns are imminent. This dog-themed token is currently hovering around $0.00001325, essentially in a sideways movement this year. The circulating supply of Shiba Inu is 589 trillion SHIB tokens, and a significant portion of SHIB tokens needs to be removed from circulation to consistently drive its price up in the index. SHIB: Can burning 200 trillion Shiba tokens a year push its price to $0.001?
From a technical standpoint, yes. Burning 200 trillion SHIB each year could eventually bring the price of Shiba Inu down to $0.001. But theoretically, it may not be feasible. Sending such a large number of tokens annually could be quite challenging, as even Shibarium may not be able to handle such a large capacity. Here is an analysis of whether burning 100 trillion SHIB each year could push the price down to $0.001.
Assumption: Burn 200 trillion tokens annually
Current total supply of SHIB: 589 trillion tokens.
If 200 trillion tokens are burned annually, it would amount to 500 trillion SHIB being destroyed after 25 years.
After 25 years, 500 trillion SHIB will be burned, nearly equivalent to the current total supply.
Result: Approximately 89 trillion Shiba Inu tokens will remain (if no new SHIB are minted).
But will this really happen? The likelihood of destroying 200 trillion SHIB tokens within 25 years is still quite low. Its market cap would also reach over $85 billion, equivalent to 11 times its current valuation. To destroy 100 trillion tokens annually, Shibarium needs to improve its burn mechanism and accelerate the burn rate. Even third-party applications need to collaborate to provide solutions for burning tokens.
Shiba Inu developers must also find new ways to burn the supply rather than just relying on Shibarium. If all of this cannot be achieved in the coming years, the likelihood of SHIB reaching $0.001 is zero.
