Place/Date: - May 18th, 2022 at 1:24 pm UTC · 5 min read
Shiba Inu (SHIB) and its investors made a killing last year when the popular meme token skyrocketed by 70,000,000%. The Shiba Inu (SHIB) community, which is dubbed the Shib Army, contributed massively to the price boom.
The Shiba Inu (SHIB) team are working hard to prevent the meme token from dying out. However, for a variety of reasons, moving Shiba Inu (SHIB) significantly higher from its current price of a fraction of a cent is going to be difficult.
A reason for this is due to its circulating supply, which is currently around 549 trillion tokens. This makes it nearly impossible for Shiba Inu (SHIB) to reach a value of $1 without the market value skyrocketing to unfathomable heights.
The latest meme token to get noticed is RoboApe (RBA), which has a presale underway to prepare for an anticipated explosion upon launch. RoboApe (RBA) is planning to introduce extensive strategies to ensure the popularity and success of the token.
Moreover, Shiba Inu (SHIB) developers have also recently implemented something to resolve this issue and prevent newer and more advanced meme tokens like RoboApe (RBA) from taking its crown.
Could this effort solve Shiba Inu’s (SHIB) main issue and send the token skyward once more? Let’s take a closer look at the tokenomics of Shiba Inu (SHIB) and RoboApe (RBA).
The Shiba Inu (SHIB) burn portal was launched this month with the goal of rewarding users for burning their SHIB tokens regularly. They can access Ryoshi tokens and generate passive income, depending on the amount burned.
When tokens are burned, they are permanently removed from circulation, thereby reducing the supply. This is unquestionably a bonus for Shiba Inu (SHIB), especially as hundreds of billions of tokens have been burned already.
Now consider how this can benefit Shiba Inu (SHIB). As previously mentioned, the issue now is that a significant gain would push the market value of Shiba Inu (SHIB) too high. If the token were worth $1, the market capitalization would be $549 trillion right now. For perspective, this isn’t just bigger than Bitcoin (BTC), but also than the entire crypto market.
The number of SHIB tokens must decrease dramatically. If we were to turn this into an equation, we’d start by lowering the total number of tokens to just under 1 trillion, such as 999 billion. Let’s say Shiba Inu (SHIB) reaches a milestone, such as $0.10. The market value would be $99 billion at that time.
After Bitcoin (BTC) and Ethereum (ETH), Shiba Inu (SHIB) would be the third-largest cryptocurrency. But Shiba Inu (SHIB) is unlikely to outperform other players who provide more real-world utility.
But there’s another reason why this scenario is unlikely – the circulating supply would have to drop by 99% from today’s level to 999 billion. This will result in the obliteration of a large number of existing tokens. As a result, most current holders will have to burn their tokens and will be unable to benefit from future price increases.
So what does this mean for investors? Yes, it is a good idea to burn SHIB and reduce supply. Unfortunately, today’s supply is so vast that even burns are insufficient to eliminate the problem.
Shiba Inu (SHIB) remains a risky investment, and coin burns alone don’t appear to be the path to a higher value right now.
First of all, this newer name might not ring any bells.
RoboApe (RBA) will be a community-driven meme token which will run on the Ethereum (ETH) blockchain. RoboApe (RBA) is unique because not only will it have a low transaction fee, but the RoboApe (RBA) team will barely profit from the fee.
Via reflection, a portion of the transaction fee will be redistributed to token holders, meaning that those owning RoboApe (RBA) gain a passive income stream without having to take any action.
Because RoboApe (RBA) will be deflationary, a portion of the transaction fee would be burnt, thereby permanently removed from circulation. As we’ve established with Shiba Inu (SHIB), burning contributes to raising the token’s overall price.
By excluding the developers’ wallet, RoboApe (RBA) reassures investors of its legitimacy to create a DAO in which holders are in charge of decision making, strengthening the community in the process.
Shiba Inu (SHIB) certainly appears dedicated to replicating some of the gains made last year. However, as we have demonstrated, the monumental high they achieved puts them in a tougher position when it comes to increasing their market capitalization.
For investors looking for the Shiba Inu (SHIB) of 2022, RoboApe (RBA) might be a good bet. The fact that it’s garnering buzz during its presale stage is a strong indicator of success, and its advanced features make them well poised for a colossal price gain.