Shiba Inu (SHIB) had one of the biggest launches in crypto history. The asset’s price experienced one of the steepest price surges of any asset in finance. One of the key drivers for SHIB’s incredible 2021 rally was Vitalik Buterin’s massive token burn. Buterin received half of SHIB’s entire supply upon the project’s launch. However, the Ethereum co-founder decided to burn 90% of the coins he received. Shiba Inu’s (SHIB) association with Buterin led to substantial validation for the project, leading to a surge in demand. The sudden supply dip and the increase in demand led to a multi-million percent rally. Let’s discuss what would happen if Shiba Inu (SHIB) replicated Vitalik Buterin’s 2021 token burn.
What Will Happen If Shiba Inu Repeats Vitalik Buterin’s Token Burn?
Shiba Inu (SHIB) currently has about 589 trillion tokens in circulation. Buterin burned nearly 410 trillion coins in 2021. If the project burns another 410 trillion coins, it would have about 179 trillion coins in circulation.
Let’s assume that Shiba Inu’s (SHIB) market cap remains at the current $3.5 billion. With a $3.5 billion market cap, the price of each SHIB token would hit $0.00001955. Hitting $0.00001955 from current price levels would entail a rally of about 223.5%. While the rally would be commendable, it is nowhere close to Shiba Inu’s (SHIB) multi-million percent rally during the 2021 bull run. Moreover, it is still substantially lower than SHIB’s all-time high of $0.00008616. This is likely because SHIB’s market cap is quite low. However, if Shiba Inu’s (SHIB) market cap increases, the price of each token will go significantly higher.
Also Read: Why Shiba Inu Cannot Repeat Its Multi-Million Percent 2021 Rally
Shiba Inu (SHIB) lead developer Shytoshi Kusama also highlighted that burns alone will not push the asset’s price. SHIB needs more adoption for its price to see larger figures. Burns could compliment the asset’s price, but it needs more adoption to see substantial gains.
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