Shiba Inu could reach astonishing new highs in the coming years if its layer-2 network, Shibarium, manages to burn substantial quantities of the meme coin’s supply. Some projections point to potential price targets as high as $0.01 or even $0.001, fueled by a reduction in SHIB’s circulating supply.
Shibarium Adoption Accelerates SHIB Destruction
Shibarium officially launched on the mainnet in August 2023, sparking excitement in the Shiba Inu community. However, the platform saw more significant user growth starting in late November 2023, processing millions of transactions.
While Shibarium offers more potential than burns alone, many users eagerly awaited its debut to bolster the incineration of SHIB. Shibarium’s base transaction fee destroys 70% of SHIB paid, according to documentation.
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Initial Shibarium burns were insignificant, with the first destroying 8.24 billion SHIB worth $75,241 on December 4. However, burns have accelerated, totaling 33.8 billion SHIB across four transactions by December 23. One January 9 burn eliminated 9.93 billion more, and developers now aim to implement automated burns. How could this impact prices?
Reducing SHIB supply
Shiba Inu’s current circulating supply sits at a staggering 581.2 trillion tokens. Many pin SHIB’s inability to produce massive rallies on this huge figure, stoking support for the burn initiative.
SHIB hit its all-time high of $0.00008845 soon after Vitalik Buterin burned 410 trillion tokens in May 2021. While increased demand likely also lifted prices, the burn’s role can’t be ignored.
With automated burns nearing and Shibarium adoption rising, proponents forecast the potential monthly destruction of trillions of SHIB. If 9 trillion tokens vanished monthly, how long until SHIB reaches lofty targets like $0.001 or even $0.01?
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Potential Timeframes to Hit Major Milestones
Burning 9 trillion monthly equates to eliminating 108 trillion a year. At that rate, half the supply (290.5 trillion) could disappear in under three years. For SHIB to maintain its $5.3 billion market cap at that circulating supply, its price would need to jump to $0.0000183.
Another year of burns could remove 108 trillion more tokens, leaving 182.5 trillion in circulation. Here, the $5.3 billion market cap would lift prices to $0.0000293 within four years.
Further, if SHIB regained its $43.5 billion peak market cap in May 2021 at an 182.5 trillion supply, its price would trade around $0.00024. The meme token would only reach $0.001 with this supply if its market capitalization climbed to $182 billion, and $0.01 would require an astonishing $1.82 trillion valuation.
Also read: Shiba Inu: $1000 Investment Could Turn Into $109k If SHIB Reaches $0.001
While hitting these targets is no guarantee, laying out the requirements illustrates just how far SHIB would need to rise from today’s price. Still, Shibarium’s burn mechanism makes a considerably higher SHIB valuation seem far more plausible.
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