Shiba Inu’s dream of $0.01 has been in doubt as it continues to trade below $0.00002 over the past year, but this key factor could be the game-changer.
Shiba Inu (SHIB) has continued consolidating underneath $0.00002 since dropping below it last May. Despite an uptick in bullish sentiments and social activity, the asset has not reclaimed the price point, making its price target of $0.01 seem like a wild dream.
However, the development of Shibarium, the much-anticipated layer-2 network for the Shiba Inu ecosystem, could provide the needed support for the asset to capture the ultimate price target at $0.01 finally. Here’s how:
Shiba Inu to $0.01: Is It Feasible?
Considering its current price point, for SHIB to hit a $0.01 price, it would need to surge by approximately 1,000x. This feat could be easily dismissed as unfeasible by some market participants, but Shiba Inu had already made a similar achievement when it surged by 3,743x in 2021.
It bears mentioning that, as of 2021, SHIB had not garnered as much attention from investors as it is currently attracting. While surging by 1,000x is possible for SHIB, its supply needs to decrease drastically for this to happen. The 3,743x increase in 2021 was majorly triggered by Vitalik Buterin’s burn of 410 trillion SHIB.
Despite the sustenance of burns, Shiba Inu’s circulating supply remains well above the 574 trillion mark. To make a dent in its extensive supply, the asset would need a game-changer that can equally incinerate more tokens and attract utility to the ecosystem. Shibarium promises to do this.
Shibarium: The Game-Changer
Shibarium is currently the most highly-anticipated project for the Shiba Inu ecosystem and for good reason. The trailblazing layer-2 solution has promised to introduce two of the biggest potential contributors to SHIB’s $0.01 price target: burns and utility.
As previously disclosed by The Crypto Basic, the Shibarium documentation released in March notes that the L2 network will burn SHIB with 70% of its base transaction fee. This special allocation could potentially incinerate trillions of Shiba Inu tokens depending on Shibarium’s adoption rate.
Several prominent entities have already declared support for Shibarium, including but not limited to NowNodes, Ledger, and Atomic Wallet. Thousands of projects have expressed interest in building on Shibarium, as evidenced in the multiple intake form applications observed, amounting to 7,000 as of March.
Ethereum’s position as one of the top blockchains in the crypto scene is due to its high adoption rate. Similarly, Shibarium’s ability to burn trillions of tokens and introduce utility to the Shiba Inu ecosystem will depend on how much adoption it garners.
The Math is simple: Shibarium brings more utility to Shiba Inu by attracting thousands of projects and investors. These projects carry out tons of transactions on Shibarium and Shibarium, in turn, burns trillions of SHIB with 70% of the base transaction fees. These burns could trigger a price surge as they did back in 2021, ultimately providing support for the journey to $0.01.
This positions Shibarium as the primary game-changing factor, but other projects such as ShibaSwap 2.0 and SHIB: The Metaverse could also provide complementary support for the price target. Shiba Inu is currently trading for $0.00001004, up 0.64% in the past 24 hours.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.