Shibarium’s Ambitious Burn Plans Aim to Tackle SHIB’s Supply Overhang, but Challenges Persist
In a recent development within the Shiba Inu community, a prominent member known by the pseudonym ‘Queenie’ has projected staggering figures regarding the potential burn of SHIB tokens through the Shibarium burn portal. Queenie estimates that the portal could incinerate an impressive 111 trillion SHIB tokens annually, constituting about 20% of the circulating supply.
The Automated SHIB Burn
This projection breaks down to a monthly burn of approximately 9.25 trillion SHIB tokens. However, it’s crucial to note that the official Shibarium team has not yet confirmed or provided details regarding the accuracy of these projections.
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Scheduled to automate SHIB burns starting this month, Shibarium will operate under predefined rules. The official document outlines that 70% of the network’s base fee will be allocated to buying and burning SHIB. However, the burning mechanism will only be activated once the burn contract reaches the $25,000 threshold.
In December, the Shibarium team manually initiated four burns, incinerating a total of 33.8 billion SHIB tokens. At the current SHIB unit price of $0.00000982, these burned tokens translate to $331,916. Despite these efforts, SHIB has struggled to experience a significant rally compared to other leading cryptocurrencies like SOL and AVAX.
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Can Burning alone spike SHIB’s price?
SHIB is currently down by 88.6% from its all-time high of $0.00008616, recorded on October 28, 2021. Community members attribute this price decline to the token’s substantial supply, prompting calls for the team to increase the network’s gas fees to support SHIB burns further.
While burning trillions of SHIB tokens is considered crucial, the lead developer of Shiba Inu has stressed that burning alone might not be sufficient to boost prices. According to the developer, the key lies in fostering Shibarium adoption, emphasizing the need for broader community engagement and utilization of the Shibarium platform. ashiva
As the Shiba Inu community eagerly anticipates the impact of the Shibarium burn portal, it remains to be seen how these initiatives will influence SHIB’s price trajectory and overall market sentiment in the coming months.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
