Shiba Inu (SHIB) is one of the most popular cryptocurrencies in the market. The asset turned many early investors into multi-millionaires. Since its launch in August 2020, SHIB’s price has risen by many million percent. However, the popular dog-themed crypto has struggled to gain momentum after its 2021 peak.
One of the most significant barriers to SHIB’s price is its massive supply. There are about 589 trillion SHIB tokens in circulation. If the asset’s price becomes very high, the project’s market cap would become unrealistically large. Hence, the project needs to reduce its supply to aim for higher prices.
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Although Shiba Inu (SHIB) has a burn portal, it does not burn as many tokens as needed to hit higher prices. However, with the launch of SHIB’s layer-2 network Shibarium, there is a lot of talk about burns spiking.
Shiba Inu: What Happens If 50 Trillion SHIB Tokens Are Burned Each Year?
If Shiba Inu (SHIB) burns 50 trillion tokens yearly, it could remove 90% of the tokens in circulation within a few years. The asset would have about 49 trillion tokens in circulation in the market. This can only help SHIB to reach a price point of approximately $0.0001 to $0.0003.
Furthermore, SHIB’s lead developer, Shytoshi Kusama, said burns alone will not push the asset’s price. The asset also requires an increase in demand. Low supply and high demand is the trick to higher prices.
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Nonetheless, the task is not an impossible one, albeit difficult. Shiba Inu (SHIB) has come a long way in its two-and-a-half-year history. It is still a young project that has a lot of room to grow. SHIB’s rival, Dogecoin (DOGE), on the other hand, has been around for over a decade.