Reaching $1 per token for Shiba Inu (SHIB) poses significant economic challenges. Two often-suggested solutions are increasing liquidity through stablecoins like Tether (USDT) and reducing SHIB's circulating supply.
Why $10 Trillion USDT is Impractical:_
- SHIB's market capitalization needs to equal or surpass its circulating supply (over 589 trillion tokens) to reach $1 per token.
- The required $589 trillion market value would necessitate an astounding $10 trillion in USDT, over 84 times the current USDT supply.
- Printing $10 trillion USDT would lead to severe inflation, destabilizing the cryptocurrency market and global financial stability.
_Token Burning: Not the Solution_
- Reducing SHIB's supply through burning does not improve liquidity, which is crucial for maintaining a stable market price.
- Burning tokens could reduce liquidity, increase volatility, and fail to promote a stable price.
_A More Practical Approach: Removing SHIB from Exchanges_
- Withdrawing large quantities of SHIB from exchanges and storing them in private wallets reduces the available supply without destructive measures like burning.
- This approach creates natural scarcity while maintaining liquidity, relying on the collective decision of SHIB holders and exchanges to reduce active trading.
Remember, SHIB's value depends on various factors, including demand, market sentiment, and real-world utility, rather than speculative price goals.
