by What Happens If 90% of SHIB Tokens Are Burned in 2024 – The Shiba Inu (SHIB) cryptocurrency, known for its canine-inspired theme, has undeniably made waves in the crypto sphere. Yet, its journey to reach the coveted $1 benchmark is fraught with challenges. Boasting an astounding return of approximately 12,975,614.3% since its 2020 debut, SHIB’s path to $1 is not without complexities.
Distinct from established cryptocurrencies like Ethereum (ETH) that offer multifaceted utility, SHIB largely thrives on community sentiment. A significant impediment to SHIB’s upward trajectory is the disproportionate concentration of tokens held by a handful of major holders.
This concentration amplifies the risk of substantial sell-offs, potentially destabilizing SHIB’s value and thwarting its quest for the $1 milestone. Additionally, the vast circulating supply of SHIB poses a considerable hurdle. While token burns aim to diminish this supply, the current rate of reduction may not be sufficiently impactful to catalyze significant price surges.
Can Shiba Inu burn activity help with the price surge?
The introduction of the Shiba Inu burn portal in April 2021 offered a ray of optimism. This initiative funnels SHIB tokens into inaccessible wallets, effectively reducing their circulation. Yet, its tangible effect on SHIB’s valuation has been moderate at best.
The emergence of the Shibarium network is another beacon of promise. With plans for active participation in token burns, proponents envision Shibarium potentially incinerating trillions of tokens annually, thereby potentially catalyzing an upward trajectory for SHIB’s value.
However, envisioning a scenario where 90% of SHIB’s supply is incinerated, leaving 50 trillion tokens in the market, underscores the monumental challenge of reaching the $1 threshold. To hit this benchmark, SHIB would require a staggering market cap of $50 trillion, eclipsing even the United States’ GDP, which currently hovers around $23 trillion.
In a more grounded perspective, reducing SHIB’s supply by over 99%—reducing it to the billions or even millions—poses a Herculean task that could span multiple decades given the existing burn rates. Nevertheless, Shibarium emerges as a potential game-changer, offering a glimmer of hope for accelerating this intricate process.
With bated breath, the crypto community observes the unfolding saga of Shiba Inu’s quest for $1, a narrative enriched by technological innovations, burn strategies, and the intricate dance of market dynamics.
