Shiba Inu (SHIB) had an explosive year in 2021. One of the most significant catalysts for SHIB’s incredible rally was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon launch. Buterin decided to burn 90% of the tokens he received. At the time, there was substantial demand for SHIB as well. The massive dip in supply and high demand led to one of the most historic price rallies in cryptocurrency history. Many fans and investors are waiting for another 2021-like burn. Let’s discuss if it can happen again.
Can Shiba Inu Replicate Vitalik Buterin’s Token Burn?
There are still about 589 trillion SHIB tokens in circulation right now. The massive supply is one significant barrier to SHIB’s price. If the asset climbs to high price levels, its market cap would reach unrealistic numbers. Reducing the token supply is one way to propel SHIB’s price.
While a burn may be an easy answer, reducing the project’s supply is no easy task. A lot of the SHIB tokens are held by whale wallets. No one wallet holds that many tokens to replicate Buterin’s massive burn. The burn initiative would need the cooperation of many token holders. This is unlikely to happen.
Shiba Inu (SHIB) lead developer Shytoshi Kusama also highlighted how burns alone will not boost the asset’s price. The project needs high demand to usher in price rallies.
The SHIB team is reportedly working on a new burn mechanism. According to rumors, the new burn mechanism will be capable of burning trillions of tokens yearly. Even if the project burns 2-3 trillion tokens every year, it would take a long time to burn 410 trillion tokens, like Buterin did.
Also Read: What $1,000 in Shiba Inu Could Be Worth If SHIB Hits $0.0007
Long story short, it is unlikely that we will ever see another SHIB burn on the same scale as the Buterin token burn.
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