Shibarium's Funding Woes Cast Shadow on Shiba Inu Price Prediction

The Shiba Inu blockchain, Shibarium, is facing a significant challenge. According to a recent statement by Kaal Dhairya, one of the developers, the network's maintenance, security, and development costs are being covered by one of the project's developers, rather than through a project treasury or venture capital. This raises concerns about the long-term sustainability of Shibarium.

The network's costs continue to run, even on days with relatively low usage, such as the 2,288 transactions recorded on October 3. This is in contrast to the Ethereum network Blast, which has announced it will shut down due to its running costs no longer being covered by its project treasury. Shibarium's reliance on a single funder makes it vulnerable to the same fate.

The burn rate of SHIB tokens on Shibarium is 2.8 million per day, with a total of 410,844,457,086,812 tokens destroyed since the network's launch. However, this scarcity is not yet translating to a significant price increase, as the circulating supply remains large and the burn rate is slow. At the current pace, it would take around 5,700 years for 1% of the circulating supply to be burned.

Market capitalization calculations show that price targets of $0.00001 and $0.01 demand significant increases in market value, with the latter corresponding to a valuation of $5.9 trillion, more than three times the current value of Bitcoin.