Shiba Inu And LUNC Race To $0.01: Which Will Get There First?

The Shiba Inu (SHIB) and Terra Classic (LUNC) ecosystems have become known for their regular token burns, which aim to increase the value of these coins.

Shiba Inu (SHIB) and Terra Classic (LUNC) have both adopted burn mechanisms in an effort to drive up the value of their respective coins. Now, a computer engineer has weighed in on the burn mechanism, revealing which coin he believes will likely reach its desired goal of $0.01.

Computer engineer Charu Bey took to X (formerly Twitter) to share his thoughts on the matter, suggesting that only LUNC will likely reach its desired goal of $0.01 through its burn mechanism. He stated that the $0.01 price target is “not a dream for LUNC,” indicating that it is more likely to become a reality at some point. However, the engineer went on to note that this was not financial advice.

On the other hand, he expressed his sadness for Shiba Inu while suggesting that the meme coin's burn mechanism hasn't changed much, considering that the token still has a circulating supply of 589 trillion. He further remarked that the SHIB community is “very quiet” about this development, unlike the LUNC community, which is still dissatisfied despite burning millions of LUNCs daily, with the token currently having a circulating supply of “only” 5.44 trillion.

Both Shiba Inu and LUNC have adopted burn mechanisms that utilize a portion of the transaction fees earned for token burns. However, LUNC has received additional assistance from the world's largest crypto exchange by market cap, Binance, which also burns trading fees earned from the token on a monthly basis. According to LUNC Metrics, Binance has burnt nearly 62 billion LUNC tokens (48.9% of total tokens burnt so far).

Meanwhile, Shiba Inu has primarily relied on the layer-2 network Shibarium for the majority of its token burns over the past year. However, network activity on Shibarium has occasionally slowed, resulting in a decrease in the rate at which Shiba Inu burns are carried out.

According to Shiba Inu's burn tracker, for the meme coin to reach a price of $0.01, its maximum circulating supply would need to decrease to around 126 trillion. This indicates that to achieve this goal, around 78.52% of SHIB's circulating supply still needs to be burned. Crypto YouTuber Jeff once suggested that it was nearly impossible for Shiba Inu to reach this price target, claiming that it would take about 1.1 million years for just 100 billion tokens to be burned.