How Long Will It Take for Shiba Inu (SHIB) to Reach $1?
On Monday, the Shiba Inu team officially announced that starting from January 2024, the Shibarium layer-2 network will commence the process of burning SHIB tokens. To gain a deeper understanding of this development and to find out the annual quantity of SHIB tokens that Shibarium will burn, you can read more details here.
As outlined in the most recent blog post, Shibarium will allocate 70% of the transaction fees generated on the network to the burning of SHIB tokens. The remaining 30% of the funds will be dedicated to supporting the network's maintenance, ensuring its smooth and efficient operation.
Shibarium plans to charge fees using the governance Bone token, serving as gas for transactions on the network. Once the Bone tokens accumulate a value of $25,000, they will automatically convert into SHIB. Following this conversion, Shibarium will initiate the burning of SHIB tokens, permanently removing them from circulation.
Given the confirmation of Shibarium's SHIB token burns, the question arises: could Shiba Inu potentially reach $1? This article will delve into the estimated timeframe it might take for Shiba Inu to achieve the $1 milestone through Shibarium's burning mechanism.
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How Much Time Will It Take for Shiba Inu (SHIB) to Hit $1?
Even if everything goes according to plan and let's say Shibarium burns 3 trillion tokens annually, reaching $1 for SHIB is unlikely within our lifetime. The dynamics at play involve a surplus in supply while demand remains limited.
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In the current scenario, Shiba Inu has 589 trillion tokens circulating with just 1.3 million holders. The adoption rate isn't keeping up with the circulation, causing the price to either decline or remain stagnant.
In summary, even if Shibarium burns 3 trillion SHIB tokens annually, it would take 98 years for Shiba Inu to reach $1. This is simply not feasible within our lifetime. However, the only possibility for Shiba Inu to have a chance at reaching $1 before our lifetime is if Shibarium manages to burn more than 100 trillion tokens each year.
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