Shiba Inu （SHIB） and Terra Classic （LUNC） ecosystems are known for their regular token burns aimed at increasing their value. An expert weighs in on the likelihood of these tokens reaching $0.01 through burn mechanisms.
Points
- Shiba Inu and LUNC are using token burns to increase their value.
- Expert Charu Bey suggests LUNC is more likely to reach $0.01.
- Shiba Inu’s large circulating supply poses a challenge.
- Binance supports LUNC burns by burning trading fees monthly.
- Shiba Inu relies on Shibarium network for burns but faces slowing activity.
Token Burns and Their Impact
Both Shiba Inu （SHIB） and Terra Classic （LUNC） have adopted token burn mechanisms to decrease supply and increase their value. By burning tokens, the total circulating supply is reduced, potentially driving up the token’s price. However, the success of these burns varies between the two tokens.
Expert Insights on LUNC and SHIB
Computer engineer Charu Bey suggests that LUNC is more likely to reach its goal of $0.01 through its burn mechanism. Bey highlights LUNC’s reduced circulating supply of 5.44 trillion compared to SHIB’s massive 589 trillion. Despite burning millions of tokens daily, the SHIB community has been relatively quiet about its progress.
Binance and LUNC Burns
LUNC has received additional support from Binance, which burns trading fees earned from LUNC transactions monthly. Binance has burned almost 62 billion LUNC tokens, accounting for 48.9% of the total tokens burned so far. This significant contribution boosts LUNC’s burn efforts and supports its price growth.
Shiba Inu’s Burn Challenges
Shiba Inu relies heavily on its layer-2 network Shibarium for token burns. However, the network has experienced periods of slowed activity, impacting the rate at which tokens are burned. According to SHIB’s burn tracker, the maximum circulating supply needs to drop to around 126 trillion for SHIB to reach $0.01, requiring about 78.52% of the current supply to be burned.
Future Prospects and Analyst Predictions
Crypto YouTuber Jeff and analyst Oscar Ramos have expressed skepticism about SHIB’s ability to reach $0.01 due to its enormous supply. Jeff suggests it could take approximately 1.1 million years to burn 100 billion tokens at the current rate. Ramos believes SHIB might reach $0.01 but not surpass it, citing supply constraints.
Conclusion
While LUNC shows more promise in achieving its price target through token burns, Shiba Inu faces significant challenges due to its large circulating supply. Continued support from platforms like Binance and increased burn activity on Shibarium will be crucial for both tokens’ success.
解説
- Token Burns: Token burning is a process where tokens are permanently removed from circulation to reduce supply and potentially increase value.
- Circulating Supply: The total number of tokens available in the market. A smaller supply generally leads to higher prices if demand remains constant or increases.
- Binance’s Role: Binance’s support in burning LUNC trading fees enhances the token’s burn mechanism and contributes significantly to supply reduction.
- Shibarium Network: Shibarium is Shiba Inu’s layer-2 network that facilitates token burns. However, its activity levels directly impact the burn rate.
- Expert Opinions: Analysts highlight the challenges of burning enough SHIB to reach $0.01, emphasizing the need for substantial burn rates and community support.