Shiba Inu (SHIB) had a meteoric rally during the 2021 bull run. The memecoin climbed to an all-time high of $0.00008616 in October 2021, just a little over a year after its launch. One of the most significant catalysts for Shiba Inu’s (SHIB) massive rally was Vitalik Buterin’s token burn. The Ethereum co-founder received half of SHIB’s entire supply upon launch. However, Buterin decided to burn 90% of the coins he received, while donating the rest to charity. Let’s discuss if SHIB could have climbed to its peak of $0.00008616 if Buterin had not burned his coins.
Could Shiba Inu Have Still Hit $0.00008 Without Vitalik Buterin’s Token Burn?
Shiba Inu (SHIB) had a supply of 1 quadrillion upon its launch in August 2020. Had Buterin not burned such a large amount of coins, the high supply would have most likely prevented the coin from making such a meteoric rise.
Vitalik Buterin is also one of the most recognized figures in the cryptocurrency sector. Shiba Inu’s (SHIB) association with Buterin also gave the project substantial validation. Many people likely became confident in putting money into the project by seeing Buterin’s association with SHIB, even though he was not involved int he project’s creation.
Therefore, it is highly unlikely that Shiba Inu (SHIB) could have hit the $0.00008616 peak without Buterin’s association and token burn.
Also Read: Shiba Inu Real World Use Cases Explained: Know This First
Despite Buterin’s massive burn, Shiba Inu (SHIB) still has about 589 trillion coins in circulation. The large supply continues to present challenges to SHIB’s price. Many wonder when SHIB will hit the $1 mark. With its current supply of 589 trillion, it is almost impossible for the memecoin to ever hit the $1 mark. Moreover, just burning through the supply may also not cut it. Shiba Inu lead developer Shytoshi Kusama has stated that burns alone will not push the asset’s price. SHIB needs real world mass adoption for prices to rally.
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