Shiba Inu (Shib) fans and investors have long pursued the prices of popular cryptocurrencies. The 1 cent and 1 dollar price range is a particularly popular target in the Seida INU community. One barrier to prevent Shiv from achieving its cent or dollar target is the large supply of the project. Approximately 589 trillion Shiv tokens are circulating. If each token price reaches $0.01 or $1, the market capitalization of the project reaches an unrealistic high number. The only way a coin hits the $1 mark is for the project to significantly reduce supply.
Can Shiba Inu burn enough tokens to hit the $1 mark?
One of the most important catalysts for Shiv’s incredible 2021 rally was the token burn of Vitalik Buterin. The co-founder of Ethereum received half of Shib’s total supply after its launch. Butarin decides to burn 90% of the coins he received (about 410 trillion). This move has led to massive supply volumes and sharp rises in prices.
It is very unlikely that the SHIB team will be able to take on another large burn of the same size as Buterin. However, there have been reports that the SHIB team is working on a new burn mechanism. Many say new burn mechanisms can burn trillions of tokens each year. This move could lead to a substantial price rallies at SHIB. But is it enough to hit a dollar?
Let’s assume that a new burn mechanism can burn 5 trillion tokens each year. Meanwhile, limit Shiv’s market capitalization to a realistic $500 billion on future dates. At this stage, a circular supply of approximately 500 billion tokens is required. The project will need to destroy approximately 588.5 trillion tokens. The annual burn rate of 5 trillion coins is 117, which takes seven years to burn 588.5 trillion coins. Even if we remove 10 trillion coins a year, it will take more than 50 years to destroy 588.5 trillion coins.
A larger combustion mechanism may help push Shiba Inu (Shib) to a higher price, but realistically hitting the $1 mark may take a very long time.
