Why The Shiba Inu Price Cannot Realistically Get To $0.001
September 04 2023 - 7:00PM
NEWSBTC
In the last crypto bull market spanning from 2020-2021, the price
of Shiba Inu ran as high as $0.00008. Due to the high euphoria at
the time, expectations rose rapidly around the meme coin, leading
to calls for SHIB at $0.001. However, this target remains as
unrealistic today as it was back then and this report dives into
the reason why. Not Enough Of SHIB Supply Is Being Burned The Shiba
Inu community officially kicked off its burning initiative back in
2022 which SHIB tokens being sent to dead addresses weekly.
However, despite being roughly a year in the making, the total
number of SHIB tokens burned so far has been next to negligible in
the grand scheme of things. Related Reading: Expert Market Analysts
Agree A Spot Bitcoin ETF Is A Matter Of When, Not If Shibburn, a
Shiba Inu burn tracking website, shows that a total of
410,658,326,324,061 tokens have been burned since the first burn.
This accounts for a little over 46% of the maximum total supply of
more than 999 trillion tokens. But even more interesting is the
fact that the community burn makes up less than 1% of the total
burned figure. Community burn accounts for less than 0.5% of total
burn figure | Source: Shibburn The vast majority of the burned
figure mentioned above comes from the burn carried out by Ethereum
founder Vitalik Buterin. The Shiba Inu founders had sent half of
the token’s supply to Buterin, who then donated 50 billion SHIB to
an Indian COVID relief fund and sent the rest to a burn address.
Buterin’s transaction carried over 410 trillion tokens and was the
first-ever recorded SHIB burn event. Given that the SHIB burned so
far is sitting at 410,658,326,324,061, it means the community burn
over the last year makes up around 0.15% of the total burned
tokens. SHIB price stalls below $0.000008 | Source: SHIBUSD on
Tradingview.com Can’t Drive Shiba Inu To $0.001 The point of the
Shiba Inu community burn was to encourage the rapid reduction of
the SHIB supply. With the supply of the token so high, it has
served as a hindrance for it to reach higher prices compared to its
fiercest rival Dogecoin. The community burn is not removing tokens
from circulation as fast as is needed, stalling the potential of
SHIB’s price hitting $0.001. Realistically, for SHIB to rise as
high as $0.001, at least 80% of its supply would have to be burned
to make this an attainable goal. This means removing hundreds of
trillions of tokens from circulation just like Buterin did with his
burn. Related Reading: Pro-XRP Legal Expert Takes The Spotlight
With Daring Ripple Vs SEC Settlement Theory However, given that
most of the remaining SHIB supply is already in circulation,
meaning in the hands of millions of holders, such a large burn is
impossible. This is because investors would not want to burn large
chunks of their holdings, which is the same as throwing dollar
bills in an open flame. Unfortunately, this means the price of the
meme coin will likely not reach $0.001 given that its current
circulating supply sits at over 579 trillion, even more than the
portion of supply already burned. Follow Best Owie on Twitter for
market insights, updates, and the occasional funny tweet… Featured
image from iStock, chart from TradingView.com
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024