The Shiba Inu (SHIB) goal to hit the $0.01 level in the future largely depends on the burning of a significant quantity of its circulating supply.
Shiba Inu is one of the cheapest assets in the crypto market, a tag it bagged based on its excessive supply of 589,289,680,799,266 tokens. Realistically speaking, the ambition to jump to $0.01 or other higher price levels cannot happen unless the supply is reduced through burning.
There has been consistent burning on Shiba Inu. However, the exercise has not yielded substantial results, with only 227 million SHIB incinerated over the past 7 days.
To achieve its longer-term goals, more drastic burning is essential. Notably, this article analyzes what the impact of 100 trillion annual SHIB burn will have on the price.
The 100T SHIB Burn Experience
Assuming the burning mechanism on Shibarium is bolstered and, at peak performance, it starts removing 100 trillion from the SHIB circulating supply per year, it will need about 5 years to remove 500 trillion SHIB.
As significant as this supply crunch is, it will leave a total of more than 81.4 trillion which at $0.01 will be worth $814,516,102,751 ($814 billion). This market valuation will place it above many of the top assets in the financial ecosystem, but most market watchers believe this is not very likely.
The 500 trillion SHIB taken out of circulation accounts for about 85% of the total. To get a more realistic projection for the potential valuation of the asset in the long term, this figure could be increased to 99% of the supply.
Shibarium is projected to play a crucial role in the incineration exercise. However, despite bolstering burns following the surge in on-chain transactions, the network has not satiated the community. The ecosystem team is looking to introduce an auto-burn mechanism.
Timeline to Hit $0.01
Assuming all conditions are equal, different models have predicted when the price of Shiba Inu will hit the long-term target of $0.01.
AI chatbot ChatGPT suggests that for Shiba Inu to grow from its current price of $0.000009648 to the 1 cent level, HODLers will have to wait for about 3 to 5 years.
This projection to hit $0.01 price mark was discounted by Google’s chatbot Gemini (formerly Google Bard). Gemini emphasized how unlikely it is for SHIB to touch that price. However, on further probe, it set a 2100 benchmark, essentially 76 years away.
