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.
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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.
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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.
Featured image created with Dall.E, chart from Tradingview.com