On Monday, 30 January, crypto YouTuber Jeff at OnTheChain.io revealed on Twitter the number of years it might take Shiba Inu to reduce its supply to 100 billion tokens.
The crypto analyst identified that Shiba Inu has a quadrillion tokens. He said if the crypto were to burn 1 million tokens per day, then it would take about 1,157,174 years to reduce its entire supply to 100 billion tokens.
Meanwhile, $XRP lawyer Jeremy Hogan commented on Jeff’s tweet by saying that “so, you’re saying it’s possible.” In other words, his comment appears to mean that it would be impossible and unrealistic for the crypto to take those years to burn its tokens to about 100 billion tokens.
Burning Will Be A Continuous Endeavor But Will Depend On Management
Shiba Inu, the second most valuable meme token by market cap after Dogecoin, was launched in 2020 when it began with one quadrillion tokens. Over the past two years, it has gradually burnt over 410 trillion tokens to reduce its supply as part of efforts to increase the value of the coins. However, there is still a lot more burning that has to be done for the token price to ever reach $1 or even $0.01.
Initially, Shiba Inu developers did not include the token burn in the crypto’s whitepaper. This means the burning was not planned at the beginning of the project. The first major Shiba Inu burn took place in June 2021 when Ethereum co-founder, Vitalik Buterin, burned 90% of the SHIB tokens sent to him (thus burning 41% of the Shiba Inu supply) to reduce the number of coins in use. That’s how the Shiba Inu community began committing themselves to burning SHIB tokens.
According to data released in October last year, it would take more than 25,000 years to burn the Shiba Inu’s value up to $0.05. Shiba Burn Tracker made such a calculation based on the rate of Shiba Inu burning, which took place in September when the crypto destroyed some 1.75 billion SHIB tokens in circulation.
On the other hand, Shib Burn Tracker also projected that for Shiba Inu to reach $1, it would take 25 years to burn 90% of the original SHIB supply based on the burn volume in September. But burning 90% of the original circulation would leave 100 trillion SHIB tokens remaining in supply.
Since SHIB only has a market capitalization of $5.7 billion, its developers would need to do more burning continuously for a few more years for a few billion tokens to remain in circulation.
SHIB Price Analysis
At the time of drafting this article, SHIB has a trading price of $0.00001164 USD, down 3.42%, with a trading volume of $265,139,495 in the last 24 hours. The value of SHIB has declined by 1.64% in the past seven days.
The TradingView chart analysis below shows a relative bullying trend as buyers try to push the price up. The cryptocurrency is in the consolidation phase, though with a bullish leaning.
The RSI stands at 62.09, which shows that SHIB is in the bull territory but is likely to experience a trend reversal or a correction in its price.
SHIB’s price bullishness may experience some corrections but may hold at the support level of $0.00001400, as indicated in the chart. If this level doesn’t hold, then the crypto is likely to see a retracement in price to a support level of $0.00000861 in the next few days.
Featured image from Shutterstock, Chart from TradingView