SHIBA INU: Predicting the Path to a $1 Value

• Announcement from the Shiba Inu Team: Shibarium to Burn SHIB Tokens
• Transaction Fees and SHIB Token Burning
• Role of Bone Tokens in the Process
• Shibarium's Potential Impact on Shiba Inu Value
• How Soon Will Shiba Inu Reach $1?
• Shiba Inu's Current Circulation and Adoption
• Conclusion

Announcement from the Shiba Inu Team: Shibarium to Burn SHIB Tokens

On Monday, the team behind Shiba Inu$0.000010 -2.05% confirmed that the Shibarium layer-2 network will commence the burning of SHIB tokens starting from January 2024. This article will delve deeper into the specifics of how many SHIB tokens will be annually burned by Shibarium.

Transaction Fees and SHIB Token Burning

According to a recent announcement, a substantial 70% of the transaction fees generated on Shibarium will be allocated for the purpose of burning SHIB tokens. The remaining 30% will be channeled towards maintenance of the network, thereby ensuring its smooth and efficient operation.

Role of Bone Tokens in the Process

Shibarium will levy transaction fees in the governance Bone token, which functions as gas for executing transactions on the network. Once the Bone tokens accumulate to a value of $25,000, they will be automatically converted into SHIB tokens. Shibarium will then proceed to burn these SHIB tokens, thereby permanently eliminating them from circulation.

Shibarium's Potential Impact on Shiba Inu Value

With the confirmation of Shibarium's intention to burn SHIB tokens, one might question if this could influence Shiba Inu's value to rise to $1. This article evaluates how many years it could potentially take for Shiba Inu to reach this milestone through Shibarium burns.

How Soon Will Shiba Inu Reach $1?

Presuming that everything goes as planned and that Shibarium burns 3 trillion tokens annually, it's still highly unlikely for SHIB to reach $1 during our lifetime. This is due to the dynamics of supply and demand, as the existing supply is substantial whereas demand is relatively limited.

Shiba Inu's Current Circulation and Adoption

At present, Shiba Inu has 589 trillion tokens in circulation with around 1.3 million holders. The adoption rate isn't keeping pace with the circulation, causing the price to either dip or remain stable.

Conclusion

Summarily, even with Shibarium's commitment to burn 3 trillion SHIB tokens annually, it would take an estimated 98 years for Shiba Inu to reach $1, a timeline far beyond our lifetime. However, if Shibarium significantly increases its burn rate to over 100 trillion tokens per year, Shiba Inu could possibly reach the $1 threshold within our lifetime.

Edited by Jonathan Stoker