The Shiba Inu （SHIB） and Terra Classic （LUNC） ecosystems are known for their regular token burns, aiming to increase value. An expert weighs in on whether these tokens can reach $0.01.
Points
- Shiba Inu （SHIB） and Terra Classic （LUNC） use token burns to increase value.
- Expert suggests LUNC has a better chance of reaching $0.01.
- SHIB’s large circulating supply poses challenges.
- Binance’s involvement in LUNC burns significantly impacts its progress.
- Token burns’ effectiveness depends on continuous and significant reduction in supply.
The Shiba Inu （SHIB） and Terra Classic （LUNC） ecosystems have become known for their regular token burns, which aim to increase the value of these coins. A computer engineer has given his opinion on this burn mechanism, revealing between Shiba Inu and LUNC, which will likely reach their desired goal of $0.01.
Will Shiba Inu and LUNC Reach $0.01?
Computer engineer Charu Bey suggested in an X （formerly Twitter） post that only LUNC will likely reach its desired goal of $0.01 through its burn mechanism. He stated that the $0.01 price target is “not a dream for LUNC,” meaning it is more likely to become a reality at some point, although the engineer warned that it wasn’t financial advice.
On the other hand, he expressed his sadness for Shiba Inu while suggesting that the meme coin’s burn mechanism hasn’t changed much, considering that the token still has a circulating supply of 589 trillion. He further remarked that the SHIB community is “very quiet” about this development, unlike the LUNC community, which is still dissatisfied despite burning millions of LUNCs daily, with the token currently having a circulating supply of “only” 5.44 trillion.
Shiba Inu and LUNC have adopted similar burn mechanisms, with some transaction fees earned deployed for token burns. LUNC has, however, had extra help considering that the world’s largest crypto exchange by market cap, Binance, has also committed to burning trading fees earned from the token monthly. Data from LUNC Metrics shows that Binance has burnt almost 62 billion LUNC tokens （48.9% of total tokens burnt so far）.
Meanwhile, Shiba Inu has had to rely on the
layer-2 network Shibarium for most of its token burns this past year. However, network activity on Shibarium has continued to slow at times, leading to a decrease in the rate at which Shiba Inu burns are carried out.
How Token Burns Can Cause Shiba Inu to Reach $0.01
According to Shiba Inu’s burn tracker, Shiba Inu’s maximum circulating supply will need to drop to around 126 trillion for its price to reach $0.01. That means about 78.52% of the meme coin’s circulating supply must still be burnt to achieve this goal. Crypto YouTuber Jeff once suggested that it was almost unlikely for Shiba Inu to reach this price target, claiming that it would take about 1.1 million years just for 100 billion tokens to be burned.
Crypto analyst Oscar Ramos previously suggested that Shiba Inu could reach $0.01 but added that he doesn’t see the meme coin going above this level because of its circulating supply. He made this statement in reaction to a prediction by the price prediction website Telegaon, which showed that Shiba Inu could reach $0.5 in 2040.
解説
- The practice of token burns is a strategic approach used by various cryptocurrency projects to reduce the circulating supply of their tokens, thereby potentially increasing their value. For Shiba Inu （SHIB） and Terra Classic （LUNC）, these burns are a crucial aspect of their value proposition.
- LUNC’s more favorable outlook in reaching $0.01 can be attributed to its smaller circulating supply and the significant contribution from Binance’s monthly burns. This external support plays a crucial role in accelerating the reduction of LUNC’s supply, which is a critical factor in its potential price appreciation.
- In contrast, Shiba Inu’s vast circulating supply poses a significant challenge. The current burn rate, even with the help of Shibarium, is insufficient to make a substantial impact in the near term. This underscores the importance of a robust and continuous burn mechanism to achieve long-term goals.
- The projections about Shiba Inu’s future price highlight the speculative nature of such predictions. While significant price targets like $0.01 or $0.5 can capture investor interest, they require substantial changes in tokenomics and market dynamics to become feasible.
- Investors and community members should focus on understanding the mechanics of token burns and their long-term implications. While burns can enhance value, they must be part of a broader strategy that includes adoption, utility, and market demand to sustain and grow the token’s value effectively.