Shiba Inu (SHIB), the popular Ethereum-based token, may be heading for a massive price boost if the network’s Layer-2 blockchain, Shibarium, significantly increases its token burn rate. Recent projections suggest that a sustained burn of 10 trillion SHIB per month over five years could reduce the circulating supply enough to dramatically change the asset’s value trajectory.

Shibarium’s Role in SHIB Token Burns

Since the introduction of Shibarium in August 2023, the blockchain has served a critical function in SHIB’s deflationary strategy. Shibarium achieves this by collecting a portion of transaction fees in BONE, converting them to SHIB, and transferring the tokens to a dead wallet.

Initially, this process was manually conducted by the Shiba Inu development team, which resulted in more than 50 billion SHIB tokens being removed from circulation. However, the process was automated in August 2024, allowing for a more consistent burn rate. Despite these efforts, the current burn volume is a small fraction of SHIB’s massive 589.5 trillion token supply.

The Hypothetical Scenario: 10 Trillion Tokens Burned Monthly

Enthusiasts in the SHIB community have long speculated about how far the price of Shiba Inu could rise if token burns were significantly ramped up. If Shibarium were to burn 10 trillion SHIB per month consistently, that would amount to around 600 trillion tokens burned over five years.

This figure exceeds SHIB’s total supply, making it an unrealistic target. However, even burning 500 trillion tokens over that timeframe would drastically alter the supply dynamics. This would leave approximately 89.5 trillion SHIB in circulation.

Such a sharp supply cut, especially in the absence of increased issuance, could place considerable upward pressure on the price of SHIB. Given that supply and demand heavily influence token prices, a significant drop in the available tokens could make each remaining token more valuable.

What the Price Would Look Like

At the time of writing, Shiba Inu has a market capitalization of $7.37 billion and trades at approximately $0.00001251. Assuming the total supply shrinks to 89.5 trillion while the market cap remains unchanged, the price per token could rise to about $0.00008234.

While this price would still be slightly below the all-time high of $0.00008845 set in October 2021, it would represent a substantial 558.19% increase from current levels. For many SHIB holders, such a return would validate years of patience and belief in the token’s long-term prospects.

Past Predictions vs. Current Projections

It’s worth noting that several price predictions from 2024 already suggested SHIB would revisit the $0.00008 range. Platforms like Changelly and CoinCodex previously forecasted that SHIB could hit this mark by mid-2024. These predictions ultimately fell short of realization, prompting both sources to revise their timelines.

Changelly now estimates that SHIB might reach $0.00008 by February 2029, while CoinCodex projects that the token could revisit this level only after 2050. Despite these more cautious projections, many members of the SHIB community still believe the token will reach new highs during the next bull run.

Community Sentiment and Caution

Optimism remains strong among SHIB supporters, with some arguing that the price could climb even without aggressive burning if market sentiment and adoption increase. However, such claims are largely speculative and lack concrete market indicators.

While excitement is understandable, industry experts caution against making investment decisions based solely on hypothetical scenarios. Factors like macroeconomic conditions, broader crypto market trends, and regulatory developments can all influence token prices.

How Market Cap Growth Could Amplify Gains

Another angle worth considering is what might happen if both SHIB’s market cap and its token supply dynamics shift simultaneously. For example, if the market cap doubled to $14.74 billion while the circulating supply dropped to 89.5 trillion, the token’s price could rise to approximately $0.0001646.

A fivefold increase in market cap would send SHIB to about $0.000411, while a tenfold rise could push the token to $0.0008234. These scenarios would see SHIB surpassing its previous highs, delivering potentially life-changing gains for long-term holders.

Realistic Expectations Moving Forward

While the idea of burning 10 trillion SHIB each month is appealing, it would require a level of blockchain activity and adoption far beyond current levels. Shibarium would need to process significantly more transactions, and the broader ecosystem would have to support such a consistent rate of token burns.

Still, as Shibarium matures and sees wider use, even a more modest burn rate could produce meaningful results over time. The continued development of use cases, partnerships, and infrastructure improvements could contribute to a sustainable deflationary model.

Conclusion

Shiba Inu’s future price performance may hinge on multiple factors, including the potential for aggressive token burns via Shibarium. If the community’s ambitious goals are met, SHIB could see a multi-fold increase in value. However, realistic expectations and a clear understanding of the crypto market’s volatility are essential for informed investing.

With speculation heating up and automation making token burns more efficient, Shiba Inu may be preparing for an interesting journey ahead. Whether SHIB reaches new heights or not, the project’s commitment to utility and innovation will likely play a central role in its evolution.