Shiba Inu (SHIB) has been struggling to regain its footing after experiencing a dramatic 70% decline from its February 2024 highs, with its current trading price languishing around $0.00001.
Notably, investors have consistently attributed this downturn to the overwhelming supply of 589 trillion tokens, which has kept the price locked in a tight range between $0.000011 and $0.000015 over the past few months.
However, recent progress has offered a fresh sense of optimism for SHIB enthusiasts. On Sep. 13, Lucie, the lead marketer of the Shiba Inu ecosystem, announced a significant upgrade to Shibarium, the platform’s Layer 2 scaling solution. This update, slated for release on Sep 20, includes the Bor upgrade (v1.3.7) and the Cancun hard fork, which aim to enhance Shibarium’s performance, security, and scalability.
Lucie further outlined that the upgrade incorporates key improvements, such as better integration with Ethereum’s latest technologies, which promises to smooth performance and optimize peer-to-peer networking. Additionally, transaction costs are expected to become more predictable and affordable while processing speeds are set to increase. The update also focuses on refining cross-chain operations, ensuring asset transfers across different blockchains are more seamless.
Despite this update, concerns about SHIB’s supply persist. On Sep. 14, a community member urged Lucie and the network’s development team to address the token’s burning mechanism to mitigate its oversupply.
“Supply is the major disadvantage for us. Do some thing guys,” he noted.
Lucie responded by explaining that the original creator, Ryoshi, had burned the keys, meaning there was no direct control over the token supply. Instead, she emphasized the need to build a large user base to facilitate the indirect burning of tokens.
“To really reduce the supply in a big way, we need millions (even billions) of users! The plan is to build an epic system that brings in tons of people, using Shibarium every day. The more users we have, the more SHIB can be burned, making it more valuable over time.” Lucie stated.
Lucie also highlighted the importance of widespread adoption and community growth.
“There’s a significant need for onboarding millions of users. It’s all about adoption and growth on Shibarium; then you’ll see burns,” she emphasized.
That said, looking forward, the SHIB community continues to expand its influence, with 1.4 million holders and over 6 million social media followers. Strategic partnerships and technological advancements are expected to drive further growth. Moreover, if significant whale activity leads to large-scale token burns, the reduction in circulating supply could potentially drive up the price of SHIB, creating an environment ripe for a surge toward $0.001.
At press time, SHIB was trading at $0.00001417, reflecting a 0.26% drop over the past 24 hours as per CoinMarketCap data.
