Shibarium Ignites SHIB: Potential Journeys to $0.01 or $0.001 Explored

If the meme coin’s layer-2 network, Shibarium, is able to consume a significant portion of its supply, Shiba Inu may rise to incredible new heights in the years to come. Due to a decrease in the amount of SHIB in circulation, some estimates suggest possible price objectives as high as $0.01 or even $0.001.

Shibarium Ignites SHIB: Pot
Source: Analytics Insight
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Adoption of Shibarium Hastens the Destruction of SHIB

In August 2023, Shibarium made its mainnet debut, igniting enthusiasm throughout the Shiba Inu community. On the other hand, the platform processed millions of transactions and had a more notable increase in users starting in late November 2023.

Although the release of Shibarium was highly anticipated by many users to support the combustion of SHIB, it provides more possibilities than burns alone. Documentation indicates that 70% of SHIB paid is destroyed by Shibarium’s standard transaction cost.

The initial Shibarium flames on December 4 destroyed 8.24 billion SHIB, valued at $75,241. The burning were not very large. Burns have quickened, though, and by December 23, they had accumulated 33.8 billion SHIB across four trades. With one burn on January 9th, 9.93 billion fewer were lost, and engineers are already working on automatic burning. What possible effects may this have on prices?

Cutbacks on SHIB Supply

The total number of Shiba Inu tokens in circulation right now is an astounding 581.2 trillion. Supporters of the burn initiative point to SHIB’s incapacity to organise large-scale protests as the reason for their lack of success.

SHIB Burn Increases 300%, Nearing $0.00001 in Price

In May 2021, not long after Vitalik Buterin burnt 410 trillion tokens, SHIB reached an all-time high of $0.00008845. Although there’s a good chance that more demand also drove up prices, the burn has an important impact.

As automated burns approach and Shibarium use increases, supporters predict trillions of SHIB might be destroyed each month. How long would it take SHIB to attain ambitious goals like $0.001 or even $0.01 if 9 trillion tokens disappear every month?

Possible Timelines for Reaching Significant Milestones

9 trillion burned per month is equal to 108 trillion removed annually. Half of the supply, or 290.5 trillion, may be out in less than three years if that rate continues. In order to keep its $5.3 billion market capitalization at that level of circulating supply, SHIB’s price would have to increase to $0.0000183.

182.5 trillion tokens might remain in circulation after 108 trillion additional tokens are burned in the next year. In this case, the $5.3 billion market capitalization would raise prices in four years to $0.0000293.

Furthermore, SHIB’s price would be about $0.00024 if it were to reclaim its $43.5 billion peak market capitalization in May 2021 at an 182.5 trillion supply. If the meme token’s market value increased to $182 billion, it would only reach $0.001 with this supply, and $0.01 would need an astounding $1.82 trillion valuation.

Although achieving these goals is not a given, outlining the prerequisites shows how much SHIB’s price would need to grow from its current level. However, a far higher SHIB value is significantly more likely given Shibarium’s burn mechanism.

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