Shiba Inu (SHIB) has come a long way since its launch in August 2020. The asset’s price rallied by many million percent during the 2021 bull run. Early investors made massive gains, reaping millions of dollars in profit.
Since its 2021 peak, SHIB has faced significant hurdles. The asset is down by more than 84% from its all-time high of $0.00008616, which it attained in October 2021. Although the memecoin has climbed the market cap charts over the last few months, its price continues to struggle.
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Why Did SHIB Skyrocket In 2021?
One of the most significant catalysts for Shiba Inu’s (SHIB) incredible run in 2021 was Ethereum co-founder Vitalik Buterin‘s massive token burn.
Although Buterin received half of SHIB’s supply upon launch, he decided to burn 90% of the tokens he received while donating the rest to charity. His actions led to a significant drop in the project’s supply, aiding the asset’s stellar performance.
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Another catalyst for SHIB’s 2021 rally was the market-wide positive sentiment. Most significant projects hit all-time highs in 2021, setting the foundation for SHIB to soar.
How High Can The Memecoin Go If 50% Of Its Supply Is Burnt?
Shiba Inu (SHIB) currently has about 589 trillion tokens in circulation. If 50% of its supply is burnt, the project will have about 294.5 trillion tokens left in circulation.
If SHIB’s market cap remains the same, at $8.01 billion, the price of each token will be around $0.000027, a rise of about 98.5% from current levels. Although the price spike would be commendable, it is still more than 219% short of SHIB’s all-time high.
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If the project’s market cap and a 50% supply burn increase, the asset’s price could go far higher than $0.000027.
