How likely Shiba Uni will hit to 1 penny. Reasons Why Shiba good investment
The Current Shiba Inu
Currently, Shiba Inu is 0.00001333 usd.ıts market cap is 5.2 billion dollars. The circulating supply from the coin market cap is 394 trillion 796 billion coins in circulation.
One thing I want to clarify is that staking Shiba Uni does not mean that the coins are burned okay.
So İt does not really affect the market price of Shiba Inu. The only thing that really affects the price is the burnt. Because burns, you take the coins out of circulation forever. So that’s why burning is important.
The Current Way of Burning Shib
Shiba Inu is currently trying to implement the burden, and that is it is implemented a 25 000 usd Shib burn and 25 000 usd leash burn for all woof listing.
So basically, every time that they are listing a new coin in the Shiba swap, they are going to be burning 25 000 usd worth of Shib and 25 000 usd worth of leash. And that is how they are implementing the burns right now.
Realistic Burn Rate Of Shib
Their goal is to have over a thousand wooofable listings this year. Which if you calculated out a thousand listings at 25 000 usd of Shib. This means that the total for a thousand would be 25 million dollars burned.
Now let’s see how that compares to the overall market, right? Currently, the market cap of Shiba Inu is 5.2 billion dollars.
That means that 25 million dollars burn per year. This year 25 million Shib burn. That means that it is probably less than 0.5 per cent burned this year, right.
This year is obviously more than half over, so. Let’s give it an average of a year, let’s say 3 000 coin listings in Shiba Uni per year.
Average 3 000 right. Even if it’s 3 000, that means it’ll only be around three per cent burn per year. Three per cent shiva e new coin burn per year.
Just a little refresher at a price of point 0.00001328 USD. Shiba Uni would have to burn a little bit over 99.9 per cent of their current coin supply to reach 1 penny. 99.9, a little bit over 99.9 per cent of Shibu. So and just that fact alone makes it very, very hard for Shiba Inu to head to one penny.
I know that they’re trying to come out with different ways to burn Shib with the nft market and with probably other things to burn Shib.
But right now, the current most best way to burn Shib is through the coin listing. So that is what I’m going to be focusing on in my spreadsheet right now to see how likely it is for Shib to hit one cent even with the burns.
If you look at this spreadsheet, we can see that right here. So there is the initial coin investment that you would have that I started out with one billion Shiba Uni coins.
Coin price right now the price is 0,00001328 usd.
Yearly coin burning, I’m going to put around three per cent. Then thirty per cent it’s probably a good estimate.
Annual coin price 20%, I put it now.
The current coin supply right now is 394 trillion 796 billion coins of Shiba Inu.
So we have here 20 years, and we assume to have 1.000.000 Shiba Uni coins in our sheet. And we have a Shiba Uni price here and ı think its price will move 20% every year. It’s actually optimistic if we check yearly growth it much more than we think.
Market cap is right here, total coin supply is going to be decreasing three per cent every year. So your total investment is equal to the price times your coins. as you can see, your price is going up every year.
As you can see here, with a three per cent burn given 20 years. Shiba Uni would go from 394 trillion coins to 214 a trillion coins.
The price, if nothing happens, if everything stays the same, would be 0,00050912 USD.
So as you can see, without the market cap increasing, it is going to be very, very difficult for you to make any really significant money on Shiba Inu if it just burns up three per cent.
Possible Scenarios
Now let’s do some crazier math. Okay, so let’s say instead of three per cent, let’s say 10 10 per year of burns okay for the next 20 years if you will burn 10 per year, it would go down to 48 trillion coins.
And the price would be 0,00010 usd which is not bad.
Your initial 13.280 dollar investment would be 109.000 dollars. This is if the market cap stays the same and the price has increased.
Let’s be real the price is going to increase, so let’s say it increases by 20 per year every year for 20 years. Let’s see how much that would be.
20% that would be and the price would be 0.0029 usd. So pretty much one-tenth of a penny, your thirteen thousand dollar investment would be three million dollars. Okay, the total coin supply would still be around 47 trillion.
Shiba Hitting 1 Cent
Now you really want to hit one penny. You would have to burn a whole lot more. How much more you would probably have to burn around 20 coins per year.
20% of the total coins you buy per year, so at the end of 21 years, you’d have 4.5 trillion coins. The price is 0.022 usd. Your thirteen thousand dollars would be 22 million dollars.
This is with the annual price increase of 20 per year. The market cap is 197 billion dollars market cap.
Realistic Shiba Inu Estimate
Now a more realistic estimate of Shiba Inu would be if Shiba Inu burned at three per cent per year and at a price increase of 30%.
So if we put that into the chart, if you start out with 13.280 dollars with a billion Shiba Uni coins, you can make a whole lot of money in around ten years, your 13.000 usd can turn into 376.000 usd. Market cap of 26 billion dollars.
So my advice for Shiba Inu is that. Don’t worry about the burns the overall burns of Shiba Uni is probably going to be around one to three per cent, which probably isn’t that big in the grand scheme.
From what I see, it’s going to be very, very tough to burn all the coins necessary a better way would be to increase the utility and just increase the price naturally.
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