Shiba Inu’s (SHIB) burn mechanism has been slowly reducing the token’s circulating supply in an attempt to push up prices. However, the burns have seldom led to significant price movements. This is particularly due to the large number of SHIB tokens in circulation. According to Shibburn, 1 billion SHIB tokens were burned in June. This amounts to a decline of about 89% in burns from May to June.
Nonetheless, with the launch of the project’s layer-2 network, Shibarium, burns might increase substantially. According to some members, Shibarium could increase its burn capacity to trillions each month. One user even said that the network could push burns up to around 20 trillion per month.
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According to certain Shiba Inu-focused Twitter handles, “Shibarium will introduce a never before seen burning mechanism.”
However, the team has made no official comment on exactly how many tokens will be burned every month. For the actual numbers, we would have to wait for the network to launch and find out.
Will burning trillions of Shiba Inu tokens push the asset’s price?
Shiba Inu (SHIB) fans and users have long targeted a price of $0.01. However, reaching that goal has been incredibly difficult so far. Some have said that a jump in burns could push the token to that target, but so far the means have not come to fruition.
However, given that Shibarium will allow SHIB to exist within its own blockchain, the possibilities have expanded. If the project can deliver on the trillions of burns each month, SHIB could potentially see a massive price jump. So far, the only significant burn in SHIB’s history is that of Ethereum chief Vitalik Buterin. Buterin had received half of SHIB’s initial supply upon launch. However, the Ethereum co-founder decided to burn half of it and donate the rest to India’s Covid-19 relief fund. Vitalik sent about 410 trillion SHIB to the dead wallet, removing them from circulation. Such a large burn is presently not likely, but Shibarium could try and match it over time.
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