Shiba Inu’s (SHIB) layer-2 network, Shibarium, was one of the most anticipated launches in the crypto industry in 2023. However, the launch did not go as smoothly as planned. Excess traffic led to the network being paused. However, Shibarium is now back online, and users are now waiting for more projects to launch on the dog-themed network, including a new burn mechanism.
One of the most talked-about projects coming to Shibarium is a new burn mechanism for Shiba Inu (SHIB). Although SHIB already has a burn mechanism, which was introduced in 2022, the team is reportedly working on a much more efficient one. According to many, the new burn mechanism could burn trillions of tokens every month. Queenie, a SHIB influencer, hypothesized that the new burn mechanism could burn 111 trillion tokens every year.
How long will Shiba Inu take to reach $0.01?
If SHIB is able to burn away 100 trillion tokens, it could have a positive impact on the asset’s price. However, it should be noted that burns alone will not lead to a price spike. Shiba Inu (SHIB) will need to see a significant increase in demand as well. With that being said, it is still difficult to say how long the project would take to reach a price of $0.01 if 100 trillion tokens were burned. If the project can burn 100 trillion tokens every year, it will take 5 years to bring the supply down to 80 trillion. And it would take about six or seven years to bring the supply down to billions. The token can then realistically reach a price of $0.01 without the market cap becoming unrealistically large.
However, whether or not the token will actually reach $0.01 after its supply comes down is not very clear. Shibarium could pave the way for more real-world use cases for SHIB, which could increase its demand. This could also potentially lead to an increase in the asset’s price.
However, there is no official word on the exact capabilities of the new mechanism. Moreover, we do not have an exact launch date for the new burns. At press time, Shiba Inu’s (SHIB) burn rate was down by 65.71%.