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SHIB price could soar tremendously if Shiba Inu’s Layer-2 blockchain Shibarium burns around 10 trillion tokens monthly over the next five years.
Since its mainnet launch in August 2023, Shibarium has served as a major engine for burning Shiba Inu tokens. The L2 blockchain initiates this burn by converting a portion of its transaction fees, initially collected in BONE, into SHIB and then sending them to the official dead wallet.
At its initial launch, the Shiba Inu ecosystem team manually conducted Shibarium-powered SHIB burns. This resulted in the incineration of over 50 billion SHIB tokens. However, the process gained full automation in August 2024, with the blockchain burning an additional 1 billion tokens.
Although Shibarium’s overall burns represent a tiny fraction of SHIB’s overall supply of 589.5 trillion tokens, many believe that as the network sees broader adoption, its burn rate will accelerate substantially.
SHIB’s Price If Shibarium Burns 10T Tokens Monthly for 5 Years
Based on this growing optimism, we estimated the value of one SHIB token if Shibarium burns 10 trillion tokens every month for the next five years.
For context, if Shibarium burns 10 trillion tokens every month for five years, it would destroy approximately 600 trillion tokens in total. With Shiba Inu’s overall supply standing at 589.5 trillion, this would theoretically burn the entire supply, which is unrealistic.
However, if Shibarium successfully burns 500 trillion tokens over the next five years, Shiba Inu would be left with a supply of 89.5 trillion SHIB afterward.
A supply reduction of that magnitude would significantly impact SHIB’s price, irrespective of whether Shiba Inu’s market cap remains unchanged or grows exponentially.
Notably, Shiba Inu boasts a market cap of $7.37 billion, with a token currently trading at $0.00001251. If Shibarium burns 500 trillion SHIB, reducing the supply to 89.5 trillion, and Shiba Inu’s market cap stays at $7.37 billion, each SHIB would be worth about $0.00008234.
This estimated price is still below Shiba Inu’s all-time high of $0.00008845, which was reached in October 2021. Nonetheless, it represents a surge of 558.19% from the current price of $0.00001251.
$0.00008 Price Forecast For SHIB
Recall that multiple entities projected that SHIB would revisit the $0.00008 region in May 2024. While Changelly predicted that SHIB would reach a maximum target of $0.00008740 by May 2024, CoinCodex set a price target of $0.00008284 in the same month.
However, these predictions did not materialize, with Changelly and CoinCodex extending their timelines for SHIB’s potential surge to the $0.00008 territory.
Currently, Changelly believes that SHIB will hit the target by February 2029. CoinCodex speculates that SHIB will revisit the $0.00008 mark after 2050, over 25 years from now.
Meanwhile, most Shiba Inu community members believe that SHIB will surpass the $0.00008 mark this year, specifically during the peak of this cycle’s bull run. These proponents do not think a hefty burn is necessary to drive SHIB’s price to this target.
Despite this optimism, caution is necessary as these commentaries are purely speculative.
Other Possible Scenarios
However, if Shiba Inu’s market cap soars tremendously following the Shibarium-powered 500 trillion token burn, the price could spike beyond the above-estimated target.
For instance, if the market cap doubles to $14.74 billion and supply drops to 89.5 trillion, SHIB’s price could rise to $0.0001646. Moreover, a fivefold increase in market cap would raise the price to $0.000411. Similarly, a tenfold increase in Shiba Inu’s price following the burn would drive the price to $0.0008234.