- Shiba Inu (SHIB) currently trades around 86% below its all-time high from October 2021.
- To reach a price of $0.0001 with a constant market cap of $7.2 billion, approximately 517 trillion SHIB tokens must be destroyed.
- Ethereum co-founder Vitalik Buterin previously burned 410 trillion SHIB tokens in 2021.
- The development team for Shiba Inu is planning a new token-burning mechanism, which may destroy trillions of tokens each year.
- Project developers state that token burns alone are not enough for price growth; increased adoption is also needed.
Shiba Inu (SHIB) peaked at $0.00008616 in October 2021 and has struggled to regain its momentum since. The meme token’s price has dropped about 86% from its highest level, leading fans and investors to aim for a new target price of $0.0001.
If Shiba Inu maintains a market capitalization of $7.2 billion and achieves a price of $0.0001 per coin, the total supply must shrink to 72 trillion tokens. This means 517 trillion SHIB would need to be permanently removed from circulation, also referred to as burned.
For context, Ethereum co-founder Vitalik Buterin previously burned 410 trillion Shiba Inu tokens in 2021, after being given half of the project’s total supply. The article notes that the number of tokens needed to reach $0.0001 is much higher than what was destroyed by Buterin’s action. More details about the transaction can be found here.
According to recent reports, the Shiba Inu development team is working on a new burning mechanism that could eliminate trillions of tokens yearly. However, the precise details and launch date of this feature remain undisclosed as of now.
The developers emphasize that burning tokens is not the sole path to reaching higher prices. “Adoption is the only way SHIB can hit a higher price point,” according to lead developer Shytoshi Kusama. The article asserts that a combination of adoption and substantial burns could better position SHIB to attain its price goals.
While investors continue to monitor both token supply cuts and adoption efforts, the complete impact of a new burn mechanism can only be assessed after more information is made public.
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