One the most significant catalysts for Shiba Inu’s (SHIB) incredible 2021 rally was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon its launch in August 2020. However, Buterin decided to burn 90% of the coins he received and donate the rest to charity. His actions led to massive supply dip, while demand was still high. As a result, SHIB’s price skyrocketed by many million percent. Let’s discuss what Shiba Inu’s (SHIB) price could be if another 100 trillion coins are destroyed.
What Will Happen If 100 Trillion Shiba Inu (SHIB) Coins Are Burned?
There are currently about 589 trillion Shiba Inu (SHIB) coins in circulation. The high supply is a substantial barrier to SHIB’s price. Let’s assume that 100 trillion coins are burned, while SHIB’s market cap remains the same at $4.24 billion. In this scenario, SHIB’s price will hit $0.00000867 (market cap divided by supply), a rise of about 20%.
However, let’s consider that Shiba Inu’s (SHIB) market cap increases over the time, before the 100 trillion coin burn. For this example, let’s assume SHIB’s market cap rises to $10 billion. In this scenario, the price of each token will hit $0.0000204, a rise of nearly 184%. In this situation, your investment would more than double in value.
While Shiba Inu (SHIB) fans and investors are hopeful for another massive burn, it is unclear is the project can actually undertake such a task. The Shiba Inu team is reportedly working on a new burn mechanism, rumored to burn trillions of coins yearly. However, we do not have any launch date, or how the new burn mechanism will actually work.
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Furthermore, burns alone may not lead to a price surge. According to Shiba Inu (SHIB) lead developer Shytoshi Kusama, demand is the only thing that can help propel SHIB’s price.
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