Shiba Inu, a popular cryptocurrency, has been making headlines recently due to the community’s ambitious goal of achieving a price point of $0.001. While this may seem like a lofty goal, the community believes that it is achievable with the help of two key catalysts: burns and utility.
A Key Catalyst for Shiba Inu’s Price Action
One of the main factors that determine an asset’s value is its supply. Currently, Shiba Inu’s circulating supply is 574.2 trillion, which is a significant hurdle to overcome in order to reach a price point of $0.001. For comparison, Bitcoin, the largest cryptocurrency by market cap, has a market cap of $518.4 billion.
In order for Shiba Inu to reach a market cap of $574.2 billion, its supply would need to be drastically reduced. One solution to this problem is token burns, which involve permanently removing tokens from circulation.
Shiba Inu has already experienced a token burn of 410 trillion carried out by Vitalik Buterin in May 2021, which helped to increase its value. However, the current burn rate is unlikely to make a significant dent in its extensive supply. The community remains committed to the project’s burn campaign, with the largest cumulative intraday burn involving 2.25 billion SHIB in 24 hours on May 3. But even if the community burns 2.25 billion tokens every day, it would take 90 years to take out 74 trillion SHIB.
Another key catalyst for Shiba Inu’s price action is utility. When an asset has real-world utility, such as being used for payment for goods and services, it can help increase adoption and demand. Shiba Inu already has utility beyond its speculative value, as it has been adopted by numerous platforms as a payment method and integrated into Binance Pay. However, the community is seeking more ways to increase its utility.
Two Projects to Look Out for Pump
Overall the key catalyst indicators of two potential projects that could help increase Shiba Inu’s utility and burn rate are Shibarium and SHIB: The Metaverse.
Shibarium is expected to attract more projects to the Shiba Inu ecosystem, while also increasing its burn rate by incinerating SHIB with 70% of every base transaction fee. The Metaverse project is also expected to bring more utility to Shiba Inu and accelerate adoption.
It’s not completely out of the question to have a price of $0.001. With the help of the 410 trillion token burn, Shiba Inu’s value rose from $0.0000000605 in March 2021 to $0.00008616 in October 2021, an increase of approximately 142,000%. It’s possible to get an 11,275% rise if further fires occur. Remember, too, that tokenomics and economic rules also play a role in determining how an asset’s value changes over time.
