Ethereum News Today: Shiba Inu's $0.001 Dream Hinges on Aggressive Supply Burns and Ecosystem Growth

Shiba Inu (SHIB), the Ethereum-based token aiming to serve as an alternative to Dogecoin, has recently drawn attention for its potential to reach $0.001. According to analysts such as LuckSide Crypto, Sheriff, and Coinpedia Markets, this price target is not out of reach, albeit highly ambitious. With SHIB’s price currently at $0.00001231, reaching $0.001 would require an 8,023% increase. Analysts attribute this potential rally to factors like minimal upside resistance, increased whale activity, and the token’s exposure to inflows into spot ETH ETFs. However, skeptics argue that SHIB’s enormous supply of approximately 589 trillion tokens remains a significant barrier.

The token’s path to achieving such a lofty goal hinges heavily on supply reduction efforts. Large-scale and sustained token burns are seen as a necessary step to make the $0.001 target more viable. Several strategies have been proposed to intensify SHIB burns. For instance, Shibarium, the L2 blockchain launched on Ethereum in August 2023, has already removed over 50 billion SHIB from circulation. The effectiveness of Shibarium’s burn mechanism, however, depends on transaction volume, with higher activity leading to greater supply reduction.

In addition to Shibarium, other initiatives are being explored. Payment gateways such as BitPay have integrated SHIB, and merchants could automatically burn 1% of every transaction paid in SHIB. NFTs themed around Shiba Inu, such as Shiboshi and SHEboshi, also offer an avenue for SHIB burns, as each mint or trade triggers a burn. Crypto exchanges like Binance, Coinbase, and Kraken could further support these efforts by imposing trading taxes and converting them into SHIB for burning. Community-led efforts, including the Karma Reputation System, aim to incentivize voluntary SHIB burns by rewarding participants with experience points for ecosystem contributions.

Despite these deflationary strategies, the broader market environment for SHIB remains mixed. Recent on-chain data suggests a bearish trend, with SHIB losing ground amid a bearish EMA crossover and rising bearish power metrics. Whale activity has also seen a decline, with major holders reducing their positions. However, some indicators, such as growing wallet accumulation and positive Chaikin Money Flow (CMF) readings, hint at a potential turnaround. Analysts are closely monitoring whether these efforts can counteract the bearish signals and reignite investor confidence in SHIB’s long-term potential.

The token’s market capitalization currently stands at $7.3 billion, with a circulating supply of 589 trillion SHIB. While this places SHIB as a significant player among memecoins, it remains a fraction of the market caps of larger cryptocurrencies like Ethereum, which is currently valued at $519 billion. For SHIB to approach $0.001, its market cap would need to surpass Ethereum’s, a scenario that requires not only deflationary pressures but also broader adoption and integration into real-world use cases.

Ultimately, while the $0.001 target is ambitious, the combination of token burns, strategic integrations, and community engagement offers a plausible, albeit challenging, path forward. Investors and analysts are keeping a close eye on these developments, but it is clear that any significant movement in SHIB’s price will depend on sustained market participation and execution of these strategies.

Source: [1] Here is How Shiba Inu Can Reach $0.001 By Reducing Supply with These 5 Methods (https://thecryptobasic.com/2025/09/06/here-is-how-shiba-inu-can-reach-0-001-by-reducing-supply-with-these-5-methods/) [2] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/price/shiba-inu) [3] shiba inu (SHIB) | Live Price, Interactive Charts, Converter, and Market Data (https://www.binance.us/price/shiba-inu) [4] 5 Cryptos That Could Become Big Names in the Next 5 Years (https://en.bitcoinsistemi.com/5-cryptos-that-could-become-big-names-in-the-next-5-years/)