Shiba Inu could witness a resurgence of increased burns from Shibarium following the launch of the much-anticipated Shiba Inu burn portal.
The Shiba Inu ecosystem team recently implemented the launch of the dedicated Shibarium burn portal, one of the most anticipated developments among SHIB community members. The Crypto Basic disclosed this in a report last week, spotlighting the excitement within the community.
The Prospect of the Shiba Inu Burn Portal
Notably, the ecosystem team called the recently launched burn portal ShibTorch, stressing that it was designed to ensure a portion of the base fee from each transaction on Shibarium goes toward burning Shiba Inu. The team noted that a reduction in SHIB supply and control of inflation are some of the reasons behind the burn portal.
The burn portal is already in effect, having incinerated millions in SHIB so far. At the reporting time, data confirms that the portal has burned up to 3.26 million Shiba Inu tokens. While this presents progress, the figure is below bullish expectations. Community figures expect the burn rate to improve in the coming months.
As earlier stated, the burn portal is one of the most awaited features in the Shiba Inu ecosystem. Its launch has rejuvenated optimism of an eventual surge in burn transactions amid the recent slowdown. For context, the community has only burned 98,136 SHIB over the past 24 hours.
For this figure to soar higher, Shibarium would need to incinerate more tokens. Nonetheless, such a development would require a rise in Shibarium adoption, as more transactions would translate to more fees, eventually culminating in higher burns.
Could Shiba Inu Hit $0.01 Amid Increased Burns?
One ambitious target some community members had for Shibarium was for it to burn up to 100 trillion SHIB a year. Notably, with Shiba Inu’s circulating supply currently at 583 trillion tokens, 100 trillion tokens burned per year would result in 83 trillion tokens over the next five years.
At this supply, Shiba Inu would still have trouble gunning for audacious price targets such as $0.01. With an 83 trillion tokens supply, a $0.01 price would push Shiba Inu’s valuation to $830 billion, higher than Ethereum’s current market cap.
Within a period of extra six months, the supply could reduce to 33 trillion tokens, considering the rate of 100 trillion token burn per year. Should Shiba Inu’s supply drop to 33 trillion, the $0.01 price could come within reach. At this supply, SHIB will boast a market cap of $330 billion if its price reaches $0.01.
This assessment confirms that even if the recently launched Shibarium burn portal incinerates 100 trillion SHIB tokens every year, Shiba Inu would only be able to aim for the $0.01 price sometime in 2030, six years from now.
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