Upon its launch in August 2020, the Shiba Inu (SHIB) team sent half the project’s supply to Ethereum co-founder Vitalik Buterin. Buterin decided to burn 90% of the coins he received while donating the rest to charity. Buterin burned close to 410 trillion tokens, leading to a massive price spike.
There are currently about 589 trillion SHIB tokens in circulation. If another 400 trillion SHIB tokens are burned, it would leave the asset with a circulation supply of about 189 trillion. Given that SHIB has a market cap of about $10 billion, it would bring the price of each coin to about $0.00005291.
Also Read: Shiba Inu: How High Can SHIB Go If Market Cap Hits $100 Billion?
Reaching $0.00005291 from current levels would translate to a growth of about 212%. It should be noted that $0.00005291 still falls short of Shiba Inu’s all-time high. SHIB reached a peak of $0.00008616 in October 2021.
SHIB lead developer Shytoshi Kusama had also said that burns alone will not drive up the asset’s price. Kusama noted that burns have to be coupled with high demand for prices to rally.
Can Shiba Inu burn 400 trillion coins?
Burning 400 trillion coins at once may be a challenge right now. The move will take mass participation of all the SHIB holders worldwide.
Also Read: Shiba Inu: SHIB Millionaires To Flourish Despite Metrics Drop
That being said, there are reports that the SHIB team is working on a new burn mechanism. The new burm mechanism is rumored to burn trillions of tokens yearly. If the team can drastically reduce SHIB’s supply, while driving up the asset’s demand, we may witness another 2021-like rally for the project. So far, we do not have a confirmation on when the new burn mechanism will go live, or how many tokens it will actually burn.
Credit: Source link