Shiba Inu (SHIB), the canine-themed cryptocurrency, has taken the crypto world by storm. However, SHIB is facing challenges in its ambitious pursuit of reaching the $1 mark. Despite impressive returns of approximately 12975614.3% since its inception in 2020, intricate dynamics may hinder SHIB’s ascent to $1.
Unlike significant cryptocurrencies such as Ethereum (ETH) with diverse use cases, SHIB primarily thrives on social sentiment. One major obstacle on SHIB’s path is the concentration of tokens in the hands of a few whales. The vulnerability to a significant sell-off looms large, potentially dealing a severe blow to SHIB’s price and disrupting its $1 aspirations.
Read more: How High Can Solana (SOL) Surge in January 2024?
The sheer magnitude of SHIB’s circulating supply emerges as a formidable barrier. While burns are gradually reducing the supply, the rate is not substantial enough to make a meaningful impact.
Can Shiba Inu burn activity help with the price surge?
A glimmer of hope resides in the Shiba Inu burn portal initiated in April 2021, which sends SHIB tokens to dead wallets, effectively removing them from circulation. However, the impact on SHIB’s price has been limited.
The Shibarium network holds potential, as it is set to participate in burns actively. Proponents suggest that Shibarium could burn trillions of tokens annually, potentially providing the boost needed to elevate SHIB’s price.
In a speculative scenario where 90% of SHIB’s supply is burned, leaving 50 trillion tokens in circulation, the path to $1 presents a staggering challenge. Achieving this milestone would necessitate a market cap of $50 trillion, surpassing even the GDP of the United States, which stands at $23 trillion.
Also read: How High Can Binance Coin (BNB) Surge in January 2024?
Realistically, SHIB would need to burn over 99% of its supply, bringing it down to the billions or even millions—a formidable task that would span decades at current burn rates. Shibarium, however, offers a ray of hope, potentially expediting and streamlining this complex process.
As the crypto community watches with anticipation, Shiba Inu’s journey to $1 remains a fascinating narrative shaped by technological advancements, burn mechanisms, and the dynamic interplay of market forces.
Credit: Source link
