A Shiba Inu (SHIB) community member has made an extremely optimistic price prediction for the cryptocurrency. They suggested that SHIB could rise to $1, based on a calculation assuming an annual burning of 111 trillion SHIB tokens. This hypothetical scenario was used to arrive at the forecast.
The individual who made the bullish price prediction for SHIB believes that an annual burn of 111 trillion SHIB tokens could be achieved through contributions from Shibarium, ShibaSwap, and Metaverse land renames. This calculation was based on the assumption that the current value of SHIB is $0.000027. In other words, if these three factors were to contribute to the token burning at this rate, it could significantly reduce the total circulating supply of SHIB, which in turn could drive up its price.
Shibarium Burns
Shibarium, a Layer 2 network for the Shiba Inu ecosystem, is one of the most highly anticipated projects within the SHIB community. One of the key features of this network is that it is expected to facilitate the burning of SHIB tokens by allocating 70% of its base transaction fees toward token burning.
The hypothetical computation for the SHIB price prediction also considered the potential impact of Shibarium, the Layer 2 network for the Shiba Inu ecosystem. Assuming that Shibarium attracts a trading volume of $5 billion outside of ShibaSwap, this would result in approximately 185 trillion SHIB tokens being traded monthly.
If Shibarium were to burn 1% of its on-chain transactional volume, this would be the burning of approximately 1.85 trillion SHIB tokens each month. Over the course of a year, this would result in the burning of approximately 22.2 trillion SHIB tokens.
ShibaSwap 2.0 Burns
The hypothetical SHIB price prediction calculation also included an assumption that ShibaSwap, a decentralized exchange (DEX), could burn up to 1% of its transactional volume. The community is anticipating the release of ShibaSwap 2.0, which has been hinted to be a comprehensive DEX with a range of essential features. The upgrade is expected to attract more adoption and boost the exchange’s transactional volume, thereby increasing the potential for a larger amount of SHIB tokens to be burned.
Related Reading: Shiba Inu: Shibarium Beta Testnet Sprints to 1M Transactions in a Week
Assuming that ShibaSwap attracts a monthly volume of $10 billion, this would amount to approximately 370 trillion SHIB tokens at the current price of $0.000027 per token. If ShibaSwap were to burn 1% of its monthly transactional volume, it would burn approximately 3.7 trillion SHIB tokens each month. Over the course of a year, this would equate to the burning of approximately 44.4 trillion SHIB tokens.
If ShibaSwap were to experience a doubling of its transactional volume, it would burn approximately 88 trillion SHIB tokens annually.
Renaming Eligible Lands
The Metaverse has announced that it is making available up to 96,288 plots of land for renaming by the SHIB community. The process of renaming a plot of land in the Metaverse requires a payment of $100 worth of SHIB, which will then be automatically burned. At the current average price of $0.000027 per SHIB, the cost of renaming a plot of land comes to approximately 3.7 million SHIB tokens.
If every plot of land in the Metaverse is renamed at a cost of 3.7 million SHIB tokens, then the renaming of 96,288 plots would result in the burning of approximately 356.6 billion SHIB tokens. In the past, holders of SHIBOSHIS NFTs could rename their tokens for a cost of $100 worth of SHIB tokens, which suggests that the community may be willing to pay this amount for the opportunity to rename plots of land in the Metaverse.
The computations presented in each section of the hypothetical SHIB price prediction analysis, including the potential burns from Shibarium, ShibaSwap, and Metaverse land renames, totaling 111 trillion SHIB tokens burned annually.
As of the time of writing, SHIB is trading at a price of $0.00001146, representing an increase of 5.82% over the past 24 hours.
Related Reading: Shiba Inu Not Among Top 10 Most Tweeted Coins In March: Has SHIB Momentum Stalled?
