Shiba Inu (SHIB), along with other memecoins, displayed a strong performance in the previous week. However, the popular dog-themed crypto is still struggling to remove the zero that it gained in May. Despite the lackluster performance of late, SHIB fans and investors still hold a target of $0.001 for the popular asset.
If Shiba Inu (SHIB) reaches a price of $0.001, its market cap would be $579 billion, as there are 579 trillion tokens in circulation. If that comes to fruition, SHIB would have the second largest market cap, behind Bitcoin’s (BTC) $590 billion. This seems very unlikely, at least in the foreseeable future Moreover, if burns were to continue at a fast pace, the number of circulating tokens would significantly decrease.
Can burns help Shiba Inu reach $0.001?
For SHIB to reach $0.001, the token would have to surge by 13358%. It would take a significant inflow of capital or a sizable burn for the asset to soar to this level.
Vitalik Buterin destroyed around 410 trillion SHIB tokens in May 2021. A similar burn event could potentially push SHIB towards its $0.001 target. However, such a burn event is unlikely to happen anytime soon. According to Shibburn, Shiba Inu’s burn tracker, the project currently destroys around 101 million tokens a day. At this rate, it would need around 11 thousand years to burn 410 trillion tokens.
Shibarium and other projects will most certainly support burning, though it is unclear to what amount. SHIB lead developer Shytoshi Kusama has pushed for the inclusion of utility and demand. In order for Shiba Inu to reach $0.001 or any significant price, a mix of burning, utility, and demand would be necessary. Kusama correctly underlined in April that a combination of burns and utility, rather than just burns, would support significant price increases for the asset. The introduction of initiatives like Shibarium, Shibacals, and SHIB: The Metaverse is motivated by this goal.
Therefore, Shiba Inu (SHIB) might not reach its goal by simply burning off tokens. Rather, a combination of different things might just get the job done. At press time, Shiba Inu (SHIB) was trading at $0.00000743, down by 1.6% in the last 24 hours.