Shiba Inu is looking to achieve either of two milestones: $0.01 or $0.001. However, it is based on the condition that tokens are appropriately burned at regular intervals. As of now, the burning events have happened manually, eliminating a large number of tokens from circulation. They are soon planning to introduce an automated burning mechanism, hoping to bump up the price. Therefore, it touches on the said milestone in the years to come.
Price Projections Based on Supply Changes
Shiba Inu has not provided a precise date, but an optimistic projection suggests that the token could take up to four years to reach at least $0.001. Assuming all conditions align favorably and that burning tokens results in a big price increase.
Shibarium, the Layer 2 network of Shiba Inu, is tasked with carrying forward the fundamentals of removing tokens from the digital economy. It started gaining recognition in late November 2023 and has processed millions of transactions. A wider adoption of Shibarium will introduce users to its potential for token burning.
The previous burning has been carried out in the following manner:
- The procedure began for the very first time on December 4, 2023. The value of the 8.24 billion SHIB tokens that were lost was roughly $75,241.
- Burns have since paced up, evident from the figure made public on December 23, 2023. Reportedly, a total of 33.8 billion SHIB tokens were burned that day.
- The most recent burn happened on January 9, 2024, removing 9.93 billion tokens.
Now, the current supply stands at 581.2 trillion tokens. Not just the burning mechanism, but it is said that the demand for the token has a lot to do with it as well. SHIB peaked in May 2021 when Vitalik Buterin burned 410 trillion tokens, reaching the value of $0.00008845. That fueled the demand and contributed to a rise in the price. Nevertheless, contributions made by the burning process remain at the center of the stage.
Implementing automated burning could cause the elimination of 9 trillion SHIB tokens. That would mean removing 108 trillion coins every year. The next three years will see 50% of its total supply disappear, and the price will reach $0.0000183. It is nearly in accordance with how analysts estimated the future of Shiba Inu. There is an optimistic prediction of $0.0000549 for SHIB by the end of 2027.
Another year could see 182.5 trillion tokens remaining in circulation as an additional 108 trillion tokens are removed. That would take the market cap to $5.3 billion for a price of $0.0000293 in 4 years.
The milestone of $0.001 is achievable if the market cap is $182 billion. The alternate milestone will enter the book if the market cap books $182 trillion in valuation.
One can say that the Shib Army is bullish about its holdings for all the right reasons. Shiba Inu has a couple of throws left in the store—the rise of Shibarium and the implementation of an automated burning mechanism. Plus, a lot depends on how much the demand for SHIB rises in the future.