Shiba Inu’s (SHIB) run during the 2021 bull run is one for the history books. The asset’s price skyrocketed within just a few months of its launch, rallying by many million per cent. Early investors made millions in profits, solidifying the project’s name as a millionaire maker. Several factors were responsible for SHIB’s incredible performance in 2021.
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Why Did SHIB Succeed in 2021?
First, the market was going through a very bullish period. The majority of significant cryptocurrency projects were reaching record highs, which paved the way for SHIB.
Second, Shiba Inu’s (SHIB) price increased much more after a severe burn in 2021. At launch, half of the project’s supply was given away to Vitalik Buterin, co-founder of Ethereum.
Buterin decided to burn 90% of the tokens and donate 10% to charity. Because of Buterin’s actions, the asset’s supply significantly decreased, which increased the asset’s price.
Although SHIB occasionally sustains burns, they pale compared to Buterin’s 2021 burn.
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Can The Asset Burn To Ten Cents?
Source: Pixabay
Hitting 10 cents ($0.10) is a significant goal for the Shiba Inu (SHIB) community. Despite the ambitious target, the journey is no easy task. One of the most substantial barriers to SHIB hitting $0.10 is the project’s massive 589 trillion token supply.
If the price of each token hits $0.10, the project’s market cap would be many trillions of dollars, which would be unrealistic.
For SHIB to hit $0.10, it will need to burn a large chunk of its supply, similar to Buterin’s 2021 burn.
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The Shiba Inu (SHIB) team is reportedly working on a new burn mechanism, which is rumored to burn trillions of tokens yearly. If the team can drastically reduce the project’s supply, the $0.10 may become a reality.
