Shiba Inu (SHIB) is a popular meme coin that has gained much attention in the crypto space. The coin’s supporters, known as Shibarmy, have a common goal: to make SHIB reach $1 in value. But how realistic is this target, and what would it take to achieve it?
One of the main factors that affect the price of a cryptocurrency is its supply and demand. SHIB has a total supply of 1 quadrillion tokens, of which 50% was sent to Ethereum co-founder Vitalik Buterin, who later burned 90% of his holdings and donated the rest to charity. This means that there are currently about 550 trillion SHIB in circulation.
To reach $1, SHIB would need to have a market cap of $550 trillion, more than the combined value of all the cryptocurrencies in the world and the global GDP. This is clearly impossible with the current supply and demand.
— SHIB Bezos (@BezosCrypto) April 3, 2023
However, there is a way to reduce the supply and increase the demand for SHIB: burning. Burning permanent removes tokens from circulation, thus decreasing the supply and increasing the scarcity and value of the remaining tokens.
According to a recent announcement by Shiba Inu’s developers, they plan to burn 111 trillion SHIB annually by implementing a burn mechanism in their upcoming products, such as ShibaSwap, Shibarium, ShibaNet, and Shiboshi.
This means that about 20% of the current supply will be burned yearly, making SHIB scarcer and more valuable over time.
If this plan is executed successfully and the demand for SHIB continues to grow, then SHIB could potentially reach $1.
However, this would still require a massive increase in market cap and adoption, which is not guaranteed. Therefore, investors should be cautious and realistic when investing in SHIB or any other cryptocurrency.