Shiba Inu (SHIB) Burn is making progress: is it going to rise?

Shiba Inu (SHIB) Coin set numerous records in 2021. Now the price of the meme currency is supposed to rise further through burning events.

Shiba Inu started as one of many memecoins among thousands of altcoins, put in an incredible rally in 2021. In particular, investors who had already invested in SHIB in January of last year were able to multiply their investment a thousandfold.

Now the price should be increased through a regular Shiba Inu Burn. Can this really work?

Shiba Inu amount in circulation prevents exchange rate in the cent range.

Shiba Inu currently has around 549 trillion SHIB tokens in circulation. For comparison: Bitcoin (BTC) currently only has almost 19 million BTC (especially since a limit of 21 million BTC is stored), while Ethereum (ETH) still has 119 million.

Even Dogecoin can speak of a proud amount in circulation with more than 132 billion DOGE in circulation. In comparison to SHIB, however, this is not worth mentioning.

The amount in circulation is also why Shiba Inu is listed in 13th place of the most valuable cryptocurrencies according to Coinmarketcap despite a low price of 0.0000336 US dollars. The market capitalization is currently listed at around 18.9 billion US dollars due to the incredibly high circulation.

While SHIB is currently still a long way from its all-time high of $ 0.00008861, many investors are hoping for a breakout of a cent and more.

However, in view of the current market situation, such an increase does not appear to be possible. At a rate of $ 0.01, SHIB would have a market capitalization of around $ 5.5 trillion and thus about six times that of Bitcoin (BTC) or three times the current total crypto market.

Shiba Inu Burn is said to trigger SHIB price increase

While Shiba Inu sparked a massive hype in 2021, it is also important what benefits Shiba Inu as a cryptocurrency will bring investors.

The developers are already working on a Layer 2 solution called Shibarium. An NFT game, non-fungible tokens, and a decentralized exchange called Shibaswap have long been an issue at Shiba Inu.

Another method for increasing the price of the Shiba Inu Coin may be the burning process. The SHIB community has repeatedly made headlines in the past few months. For example, the community reached around 500,000 signatories for a petition on change.org.

The amount of SHIB in circulation will be drastically reduced through burning events. The Shiba Inu Coin price should be driven up if demand remains the same or increases by reducing the supply.

For example, a total of 14.6 million SHIB tokens were irrevocably sent to a null address within one day. While the Shiba Inu Company burned 11.86 million SHIB, Bigger Entertainment recently burned just over 2.5 million SHIB coins. The parties announced this on Twitter.

Congrats to Shiba Coffee Company on their 2nd large burn! We’ll be burning more today, and I hear Bricks Buster will be doing another large one soon as well. #shib #shibarmy https://t.co/Ury4GPz0jy – Steven Cooper (@iamstevencooper) January 2, 2022.

Can the Shiba Inu price increase through burning events?

At first glance, it naturally sounds logical that the price of a cryptocurrency should rise due to a deflationary orientation. However, this primarily only refers to the individual coin or token and not necessarily to the entire market capitalization of a cryptocurrency.

Around 753 billion SHIB tokens would have to be burned every day by half of the amount in circulation. And even with 275 trillion SHIB in circulation, the Shiba Inu rate would be worth more than Bitcoin at a rate of one cent.

Even if these price jumps are not realistic, it can still be the case that the rate of the meme currency continues to rise. Dogecoin has also reached prices that many had not thought possible.

In terms of market capitalization, Shiba Inu has almost reached such prices as well.

How long-term a price increase ultimately depends on how great the benefits of the cryptocurrency are. 

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