The Shiba Inu team has confirmed that starting January 2024, the Shibarium layer-2 network will begin burning SHIB tokens as part of its deflationary strategy. This move aims to gradually reduce the circulating supply, which could potentially impact SHIB’s long-term price trajectory. According to official reports, 70% of the transaction fees generated on Shibarium will be allocated for SHIB burns, while the remaining 30% will be used for network maintenance and operations.
Shibarium operates using Bone (BONE) as its governance and gas fee token. When transaction fees accumulate to a $25,000 threshold, BONE will be converted into SHIB, and those tokens will then be burned—permanently removing them from circulation. While this mechanism introduces a structured burn process, the real question remains: Can this burning strategy propel SHIB to the coveted $1 mark?
Can SHIB Reach $1 Through Shibarium Burns?
Even under optimistic projections where Shibarium burns 3 trillion SHIB tokens annually, reaching $1 remains a distant dream. The primary challenge lies in SHIB’s massive circulating supply, which currently stands at approximately 589 trillion tokens. In addition, the adoption rate has yet to match the enormous supply, causing price stagnation despite community-driven initiatives.
For context, burning 3 trillion SHIB per year would require nearly a century—approximately 98 years—before the token supply shrinks enough for the price to reach $1. This timeline makes it nearly impossible for SHIB to achieve this milestone within our lifetime unless the burn rate increases significantly. If Shibarium or other initiatives manage to burn over 100 trillion SHIB per year, the odds of reaching $1 would improve drastically, potentially making it feasible within a few decades.
The Road Ahead for SHIB
While the journey to $1 seems incredibly challenging under the current burn rate, Shiba Inu’s future remains promising with continuous development, adoption, and ecosystem expansion. The implementation of additional burning mechanisms, strategic partnerships, and increased utility could accelerate SHIB’s value appreciation over time. Investors and holders should focus on the bigger picture—gradual supply reduction, long-term adoption, and real-world utility—rather than fixating solely on the $1 target.
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