Why SHIB at $0.001 is Unrealistic: Not Enough Supply Burning
In the last crypto bull market from 2020-2021, Shiba Inu reached a high price of $0.00008. People started expecting SHIB to hit $0.001, but that target remains unrealistic. Let’s explore why.
Not Enough SHIB Supply is Being Burned
The Shiba Inu community initiated a burning program in 2022, where SHIB tokens are sent to dead addresses weekly. However, the number of tokens burned so far is insignificant compared to the total supply. Shibburn, a burn tracking website, shows that only about 46% of the maximum total supply has been burned. The community burn makes up less than 1% of the total burned tokens.
Most of the burned tokens come from Ethereum founder Vitalik Buterin’s burn. He received half of the token’s supply and donated 50 billion SHIB to an Indian COVID relief fund, burning the rest. The community burn over the last year accounts for only 0.15% of the total burned tokens.
Can’t Drive SHIB to $0.001
The purpose of the community burn was to reduce the SHIB supply rapidly. However, the supply is still too high for SHIB to reach higher prices compared to Dogecoin. To reach $0.001, at least 80% of the supply would need to be burned. But most of the remaining supply is already in circulation, making a large burn impossible.
Unfortunately, this means SHIB’s price is unlikely to reach $0.001. The current circulating supply is over 579 trillion, even more than the burned supply. Therefore, burning a significant portion of the circulating supply is not feasible.
Hot Take:
Despite high expectations, SHIB’s price reaching $0.001 is unrealistic due to the insufficient burning of supply and the large amount already in circulation. Don’t expect SHIB to hit that target anytime soon.
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