Shiba Inu (SHIB) has a supply of nearly 589 trillion coins. The massive supply presents a substantial barrier to the asset’s price. One of the most significant catalysts for SHIB’s incredible 2021 rally was Vitalik Buterin’s token burn. Buterin received half of SHIB’s entire supply upon launch. However, the Ethereum co-founder burned 90% of the coins he received. The sudden supply dip led to a massive price rally for SHIB. Let’s discuss how high Shiba Inu (SHIB) can go if we burn half the current supply.
What’s Shiba Inu’s Price If We Burn 50% Of The Supply
If 50% of SHIB’s supply is destroyed, the project will have 294.5 trillion tokens remaining in circulation. Let’s assume that the project’s market cap remains the same, at $6.14 billion. In such a scenario, the price of each SHIB token will hit $0.00002085. Although the growth would be commendable, it is still way lower than Shiba Inu’s (SHIB) all-time high of $0.00008616. However, if Shiba Inu’s (SHIB) market cap increases, the price of each token will go much higher than $0.00002085.
While many assume that burning a large portion of Shiba Inu’s (SHIB) supply will lead to higher prices, it may not be the case in reality. According to SHIB lead developer Shytoshi Kusama, burns alone will not push the asset’s price. Burns have to be met with high demand for prices to rally. Nonetheless, reducing the supply will most likely aid the asset’s pursuit of higher prices.
Also Read: Analysts Say It’s Over: Shiba Inu May Never Reach Its ATH Again
The Shiba Inu (SHIB) team is reportedly working on a new burn mechanism, rumored to burn trillions of coins yearly. Despite the ambitious initiative, we still do not have an official launch date. The team has also not revealed how the project aims to burn the coins in question. SHIB already has a burn mechanism, albeit the number of tokens burned every year is quite low.
