Shiba Inu (SHIB), a cryptocurrency that originally gained attention as a meme coin, is slowly evolving into something much more. With a market cap of $15 billion and a massive surge in its burn rate, SHIB is gaining momentum. But there’s a bold idea floating around, burn 99% of its supply. Could this risky move push SHIB to $1, or will it collapse the ecosystem? Here’s what Shytoshi Kusama, the lead developer, says.
Can Burning 99% Push SHIB to $1?
Shiba Inu has been burning tokens at an impressive rate recently. In just a few days, the burn rate skyrocketed by 6,220%, reducing the circulating supply significantly. Out of the original 999 trillion tokens, over 410 trillion have already been burned, leaving just 541 trillion.
While this has sparked excitement, one X user asked Shytoshi Kusama, can burning 99% of SHIB’s tokens is possible and if it takes the coin to $1.
99% is also hard for a few reasons. 1. Assuming things started spiraling to a huge burn, people will buy considering that the price will moon. In this case, it would be more expensive to burn Shib, slowing down burning. In that case, it’s. It’s not the burning that matters its…
— Shytoshi Kusama™ (@ShytoshiKusama) November 24, 2024
Kusama replied that it’s technically possible but that burning tokens isn’t the only thing that will drive SHIB’s price higher. He explained that burning tokens is just one factor in boosting SHIB’s price, with multiple projects in the Shiba Inu ecosystem, like decentralized finance (DeFi), also playing a key role.
Risk of Burning Too Much, Too Fast
Kusama warned that burning too many tokens too quickly could hurt the Shiba Inu ecosystem. If SHIB becomes too expensive, fewer people will buy it, slowing down the burn rate and halting growth.
While burning tokens is important, it must be balanced with other efforts to help SHIB reach its full potential.
Shiba Inu’s Layer-2 Solution: Shibarium
One of the most promising developments for Shiba Inu is Shibarium, the project’s layer-2 solution. Recently, Shibarium reached a significant milestone, processing over 8 million blocks and surpassing 400 million transactions.
Shibarium helps by lowering transaction fees, increasing transaction speed, and improving scalability. These changes could boost SHIB’s long-term success by creating more ways to use the token and encouraging adoption.
Shiba Inu’s Price Analysis
While Shiba Inu’s price has been climbing, some experts believe it could rise even more. Technical analysis suggests that SHIB could reach $0.000045 if it manages to break certain resistance levels.
However, to reach even higher levels or possibly $1 the community needs to balance token burning with other efforts, like improving Shibarium.
