Shiba Inu's $1.2M SHIB Burn: Paving the Way to $0.01?

• Shiba Inu's Lead Developer Teases Possible Major Token Burn
• SHIB's Burn Rate Spike and Shibarium's Role
• User Suggestions and Kusama's Response
• Will SHIB Reach $0.01 After Burning $1.2 Million Worth of Tokens?
• Current State of Shiba Inu's (SHIB) Price

Shiba Inu's Lead Developer Teases Possible Major Token Burn

Shytoshi Kusama$49.4 -1.55%, the lead developer of Shiba Inu$0.000010 -2.05% (SHIB), has hinted at a potential massive burn of the memecoin in the near future. Kusama suggests that around $1.2 million worth of SHIB tokens could face incineration. Despite the high burn rate in 2023, the process has been inconsistent and unpredictable. Yet, members of the Shiba Inu community, colloquially referred to as the SHIB Army, are advocating for more token burns to reduce the available supply.

SHIB's Burn Rate Spike and Shibarium's Role

Kusama's hint implies that the burn rate of Shiba Inu (SHIB) might surge in the coming period. The burn rate on Shibarium, the project's layer-2 network, has already shown a significant increase. As per the data available on Shibburn, around half of all token burns are now happening on this network. The burns on Shibarium are being facilitated through the use of ShibaSwap Bone (BONE) as gas fees. To date, there has been an accumulation of 1,367,845.42 BONE tokens, equivalent to roughly $1.2 million. The collected gas fee is then converted into SHIB tokens and dispatched to a dead wallet.

User Suggestions and Kusama's Response

An user, known as randomartz3, proposed the idea of utilizing the gas fee to burn both BONE and SHIB tokens. However, Kusama disagreed with this suggestion, stating that the gas fee would solely be used for the burning of Shiba Inu (SHIB) tokens.

Will SHIB Reach $0.01 After Burning $1.2 Million Worth of Tokens?

While the removal of $1.2 million worth of SHIB tokens from circulation is anticipated to have a positive effect on the memecoin's price, it is improbable for the coin to reach $0.01 given its enormous circulating supply. Currently, there are approximately 589 trillion SHIB tokens in circulation. To achieve a price of $0.01, there would need to be a significant reduction in the token's supply.

In addition to the potential token burn hinted at by Kusama, a recent fork in the Shibarium network has allowed for more active token burning. However, the exact number of tokens to be burned post-hard fork has not been disclosed by the team.

Current State of Shiba Inu's (SHIB) Price

Shiba Inu's (SHIB) price has seen a downturn recently, adding an additional zero after the decimal point. This decline is likely due to the expected correction in the crypto market, potentially influenced by the upcoming US inflation data release.

Edited by Jonathan Stoker