Shiba Inu’s (SHIB) massive 589 trillion circulating supply is a significant barrier to its price. If the price of each SHIB token reaches very high, the project’s market cap will hit unrealistically large figures. The only way out of this is to drastically reduce SHIB’s circulating supply. Let’s discuss how many Shiba Inu (SHIB) coins need to be burned for the price of each token to hit $0.001.
How Many Shiba Inu Coins Need To Be Burned To Hit $0.001?
Let’s assume Shiba Inu’s (SHIB) market cap reclaims its peak of $13 billion. In this scenario, SHIB needs a circulating supply of 13 trillion coins for each coin to be worth $0.001. This means that nearly 576 trillion coins will need to be burned. However, burning 576 trillion coins is no easy task. The current burn rate is nowhere close to burning such a large number of coins in a short period.
The only time we witnessed a large number of Shiba Inu (SHIB) coins being burned is Vitalik Buterin’s massive token burn in 2021. The Ethereum co-founder received half of SHIB’s entire supply after the project’s launch. However, Buterin decided to burn 90% of the coins he received and donated the rest to charity. His actions led to massive dip in supply, consequently leading to a massive price rally.
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While Buterin’s 2021 burn was a historic moment for Shiba Inu (SHIB), undertaking another burn of a similar magnitude is a near-impossible task. Moreover, lead developer Shytoshi Kusama has said that burns alone may not help push SHIB’s price. Burns need to be coupled with mass adoption for the asset’s price to rally. Shiba Inu (SHIB) is currently down by more than 91% from its all-time high of $0.00008616, and is not showing any signs of hitting a new peak any time soon.