Look at how both cryptocurrencies- Shiba Inu and EverGrow coin aim to use coin burning to get there 

Shiba Inu grew from a price of $0.000000000168 to $0.00003503 between January and May last year – but can it do the same in 2022?

The long-term goal for Shiba Inu investors is to get from a current price of $0.00002086 to $1. A $1 Shiba Inu is likely a long way, which is why $0.001 is seen as a major milestone to reach through the mechanism of coin burning.

EverGrow Coin is a crypto newcomer that launched in September last year with all the benefits of Shiba Inu-style coin burning built-in. EverGrow Coin has a price of $0.0000004911 and is poised for a major coin burn that could take it to $0.001 before Shiba Inu.

In this article, we'll look at how both cryptocurrencies aim to use coin burning to get there.

EverGrow Coin prepares to burn 2.5 trillion coins a month

What is coin burning in crypto? It refers to a process of sending crypto tokens to a 'dead' or 'burn' wallet which removes them permanently from the circulating supply. Just like with any commodity, a rapid decrease in supply causes a rapid increase in price (so long as demand remains the same). 

EverGrow Coin launched in September with the backing of investment professionals who had noticed the power of Shiba Inu coin burning. EverGrow Coin has a 14% transaction tax built-in of which 8% is redistributed as BUSD reflections to investors and 2% set aside for strategic coin burns. 

EverGrow Coin has a modest market cap of around $200 million but has regularly seen EGC daily trading volume of over $2 million in April. This means around $1.2 million should soon be available for a strategic coin burn of around 2.5 trillion EGC tokens – or 0.2% of the total EverGrow Coin supply.

EverGrow Coin has already burned 52.87% of its supply according to bscscan.com – this is well above the Shiba Inu burn rate of 42.03%. Because the EverGrow Coin coin burning mechanism is built into the transaction tax, it means that the more EverGrow Coin increases in price the more EGC tokens its development team will be able to burn to get closer to $0.001.

Shiba Inu projects get together to burn more SHIB

The key feature that made Shiba Inu is also complicating Shiba Inu coin burns: Shiba Inu is decentralised. Though there are official websites and Twitter accounts, there's no one entity directing the Shiba Inu roadmap.

While this is exciting as development in wealth creation and management, it means that individual investors and projects are doing their own Shiba Inu coin burns. These include projects like Shiba Inu Coffee Company which burn SHIB with profits from selling coffee. The fastfood chain Welly also announced in May they will burn Shiba Inu with profits.

Earlier in April, the ShibaSwap burn portal launched. To date, it has burnt 24 billion SHIB tokens – about $50,000 worth of Shiba Inu. 

All these projects add to the Shiba Inu burn rate which is currently at 42.03%. The more Shiba Inu coins are burned the more Shiba Inu should rise in price towards $0.001. 

Is Shiba Inu or EverGrow Coin more likely to hit $0.001 first?

The main disadvantage of Shiba Inu coin burns is that they are really expensive – it would cost over $100 million to burn 1% of Shiba Inu tokens. While it would only cost $2 million to burn 1% of EverGrow Coin tokens, EGC does not yet have the popularity of Shiba Inu to ensure continued demand. 

The Shiba Inu challenge is to incentivise both investment and for investors to burn – i.e. destroy – part of their own investment. The EverGrow Coin challenge is to spread the word to more investors while remaining true to its core values and current transparency.