On Monday, 30 January, crypto YouTuber Jeff at OnTheChain.iorevealed on Twitter the number of years it might take Shiba Inu to reduce its supply to 100 billion tokens.
The crypto analyst identified that Shiba Inu has a quadrillion tokens. He said if the crypto were to burn 1 million tokens per day, then it would take about 1,157,174 years to reduce its entire supply to 100 billion tokens.
Meanwhile, $XRP lawyer Jeremy Hogan commented on Jeff’s tweet by saying that “so, you’re saying it’s possible.” In other words, his comment appears to mean that it would be impossible and unrealistic for the crypto to take those years to burn its tokens to about 100 billion tokens.
Burning Will Be A Continuous Endeavor But Will Depend On Management
Shiba Inu, the second most valuable meme token by market cap after Dogecoin, was launched in 2020 when itbegan with one quadrillion tokens. Over the past two years, it has gradually burnt over 410 trillion tokens to reduce its supply as part of efforts to increase the value of the coins. However, there is still a lot more burning that has to be done for the token price to ever reach $1 or even $0.01.
Initially, Shiba Inu developers did not include the token burn in the crypto’s whitepaper. This means the burning was not planned at the beginning of the project. The first major Shiba Inu burn took place in June 2021 when Ethereum co-founder, Vitalik Buterin, burned 90% of the SHIB tokens sent to him (thus burning 41% of the Shiba Inu supply) to reduce the number of coins in use. That’s how the Shiba Inu community began committing themselves to burning SHIB tokens.
According to datareleased in October last year, it would take more than 25,000 years to burn the Shiba Inu’s value up to $0.05. Shiba Burn Tracker made such a calculation based on the rate of Shiba Inu burning, which took place in September when the crypto destroyed some 1.75 billion SHIB tokens in circulation.
On the other hand, Shib Burn Tracker alsoprojected that for Shiba Inu to reach $1, it would take 25 years to burn 90% of the original SHIB supply based on the burn volume in September. But burning 90% of the original circulation would leave 100 trillion SHIB tokens remaining in supply.
Since SHIB only has a market capitalization of $5.7 billion, its developers would need to do more burning continuously for a few more years for a few billion tokens to remain in circulation.
At the time of drafting this article, SHIB has a trading price of $0.00001164 USD, down 3.42%, with a trading volume of $265,139,495 in the last 24 hours. The value of SHIB has declined by 1.64% in the past seven days.
The TradingView chart analysis below shows a relative bullying trend as buyers try to push the price up. The cryptocurrency is in the consolidation phase, though with a bullish leaning.
The RSI stands at 62.09, which shows that SHIB is in the bull territory but is likely to experience a trend reversal or a correction in its price.
SHIB’s price bullishness may experience some corrections but may hold at the support level of $0.00001400, as indicated in the chart. If this level doesn’t hold, then the crypto is likely to see a retracement in price to a support level of $0.00000861 in the next few days.
Featured image from Shutterstock, Chart from TradingView
Before now, the Shiba Inu team has been burning a massive number of SHIB coins on the L2 network Shibarium since December 2023 through a percentage of the network's gas fees. Since the launch of Shibarium, the team has incinerated up to 43 SHIB coins in five different burns.
In 2022, a Shiba Inu community member, who goes by the pseudonym 'Queenie,' projected that the Shibarium burn portal could incinerate a whopping 111 trillion SHIB tokens annually.
Burning Shiba Inu, or permanently removing coins from circulation, is a strategy to reduce supply and potentially increase the value of the remaining coins. This tactic is often used to create scarcity, which can be appealing to investors as it might lead to price appreciation due to the reduced supply.
To this end, the Shiba Inu team has introduced several different burning measures designed to reduce the circulating supply of SHIB. So far, over 410 trillion of the starting 1 quadrillion tokens have been burned.
In January 2024, the Shiba Inu cryptocurrency ecosystem witnessed the burning of approximately 9.9 billion SHIB tokens, a move aimed at reducing the token's circulating supply and potentially increasing its value.
Users can burn their SHIB tokens using ShibBurn and receive a reward in the form of a unique token. The Shiba Inu Burn mechanism has been successful in reducing the circulating supply of SHIB tokens, which has a positive impact on the token's price.
If Shibarium burns 100 trillion SHIB tokens a year, 500 trillion coins in circulation will be sent to the dead wallet. That's removing 90% of tokens in the next year years. The development will leave Shiba Inu with another 49 trillion tokens in circulation in the market.
It would be extremely difficult for Shiba Inu to reach 1 cent. Even during SHIB's all-time high in October 2021, when the token was trading at $0.0000881, SHIB would have needed to increase in price by 113x to hit $0.01.
The predicted burn rate for shibarium is as follows: Shibarium might expand #SHIB 's token burn rate to 5 trillion tokens every month, which at the current circulating supply of 579.1 trillion tokens, would take almost five years to burn through half of the asset's supply, according to a well-known Shiba analyst.
Although the figure may seem significant, it is not something the project has not achieved before. According to Changelly, SHIB could hit a maximum price of $0.0004539546 by 2033. The platform anticipates SHIB to reach $0.0005 sometime between 2033 and 2040. Telegaon paints a more bullish picture for Shiba Inu (SHIB).
Despite the more conservative predictions from Changelly and other crypto experts, some analysts believe that Shiba Inu has the potential to reach, or even surpass, its all-time high of $0.00008616 in the wake of the Bitcoin halving.
The Shiba Inu burn portal has reportedly burnt more than 1.5 billion Shiba Inu tokens in the past 24 hours. Coin burning refers to the process of destruction of a coin so that it cannot be used again.
Shiba Inu price is $0.00002382, down -3.88% in the last 24 hours, and the live market cap is $14,052,209,120. It has circulating supply of 589,263,311,070,003 SHIB coins and a max supply of 999,982,361,374,274 SHIB alongside $485,649,420 24h trading volume.
The tracking site Shibburn reports that over 24.2 million SHIB tokens were burned in the last 24 hours, indicating a 61.02% increase in the token burn rate. The current circulating supply of the meme coin is a staggering 582.7 trillion tokens.
This has allowed the overall daily SHIB burn rate to stage an increase of 88.32%. The three largest burns on this list have been the transactions that carried 35,852,170, 6,261,928 and 1,000,000 SHIB to unspendable blockchain addresses.
According to Shibburn, almost 1.7 billion SHIB tokens were burned last month following 204 transactions. The team behind the meme coin revealed that most destroyed assets were transferred to the Contract Address.
Introduction: My name is Pres. Lawanda Wiegand, I am a inquisitive, helpful, glamorous, cheerful, open, clever, innocent person who loves writing and wants to share my knowledge and understanding with you.
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