If Shiba Inu’s Layer-2 Blockchain wave burns around 10 trillion tokens per month over the next five years, Shib Price could skyrocket.
Since the launch of Mainnet in August 2023, the Shaibarium has been the main engine for burning island tokens. The L2 blockchain begins this burn by converting some of the transaction fees collected in the bones into SHIBs and sending them to the official dead wallet.
At the time of its initial launch, the Shiba Inu ecosystem team manually carried out Shib Burns with Shibarium. This has resulted in over 50 billion shiv tokens being incinerated. However, the process gained full automation in August 2024, with blockchain burning another billion tokens.
Shibarium’s overall burns represent a small portion of Shib’s overall supply of 589.5 trillion tokens, but many believe that burn rates will be significantly accelerated when the network looks at wider adoption.
Shib price if Shibarium burns 10 tokens per month for 5 years
Based on this growing optimism, we estimated the value of one shiv token if Shibarium burns 10 trillion tokens per month for the next five years.
In the context, if Shibarium burns 10 trillion tokens for five months each month, it destroys a total of around 600 trillion tokens. This theoretically consumes the entire supply, as Shiba Inu’s overall supply stands at 589.5 trillion, but this is unrealistic.
However, if Shibarium burns 500 trillion tokens over the next five years, Shiba Inu will have a supply of 89.5 trillion Sh.
Whether Shiba Inu’s market capitalization has not changed or it grows exponentially, a supply reduction of that magnitude has a significant impact on Shib’s price.
In particular, Shiba Inu’s market capitalization is $7.37 billion, and tokens are currently being traded at $0.00001,251. With Shibarium burning 500 trillion shibs, supply dropping to 89.5 trillion and Shiba Inu’s market capitalization at just $7.37 billion, each SHIB is worth around $0.00008,234.
This estimated price is still below Shiba Inu’s all-time high of 0.00008845, which reached October 2021. Still, it represents a surge of 558.19% from the current price of 0.00001251.
Price forecast for $0.00008 Siv
Remember that multiple entities predicted that SHIB would revisit the $0.00008 region in May 2024. Shangelly predicted that SHIB would reach its maximum target of 0.00008740 by May 2024, but in the same month Cincodex set a price target.
However, these predictions did not come true. Shangelly and Concodex have expanded Shib’s potential surge timeline to $0.00008.
Now, Changelly believes Shib will reach its target by February 2029. Cocincodex estimates that Shib will revisit the $0.00008 mark after 2050 and more than 25 years later.
Meanwhile, most Shiba Inu community members believe that Shiv will surpass the $0.00008 mark this year, especially at the peak of the bull run in this cycle. These supporters don’t think that a large amount of burns are needed to guide Shiv’s prices to this goal.
Despite this optimism, these commentaries are purely speculative and therefore caution is required.
Other possible scenarios
However, if Shiba Inu’s market capitalization rises very high following the 500 trillion token burn on the Wave, the price could skyrocket beyond the above targets.
For example, if the market capitalization doubles to $14.74 billion and the supply drops to 89.5 trillion, the price of the Sib could rise to $0.0001646. Furthermore, if the market capitalization rises five times, the price will be raised to $0.000411. Similarly, if the price of a Shiba Inu rises 10 times after burns, it will cost $0.0008,234.