Shiba Inu (SHIB) team, launched in August 2020, allocated half of the project’s supply to Ethereum co-founder Vitalik Buterin. Buterin decided to burn 90% of the coins he received and donate the remaining to charity. Buterin burned nearly 410 trillion tokens, resulting in a significant price surge.
Currently, there are about 589 trillion SHIB tokens in circulation. If another 400 trillion SHIB tokens are burned, this would reduce the circulating supply to about 189 trillion. Considering SHIB’s market cap is around $10 billion, this would bring the price per coin to approximately $0.00005291.
Reaching $0.00005291 from the current level would represent an increase of about 212%. It is worth noting that $0.00005291 is still below Shiba Inu’s all-time high. SHIB reached a peak of $0.00008616 in October 2021.
SHIB’s lead developer, Ryoshi, also stated that burning alone would not drive the asset’s price. Ryoshi pointed out that burning must be combined with high demand to see a rebound.
Can Shiba Inu burn 400 trillion coins?
Burning 400 trillion coins at once might be a challenge. This would require massive participation from SHIB holders worldwide.
However, reports suggest that the SHIB team is exploring a new burning mechanism. The new Myanmar mechanism is rumored to burn trillions of tokens annually. If the team can significantly reduce SHIB’s supply while increasing demand for the asset, we may see a similar rebound for the project in 2021. So far, we have not confirmed when the new burning mechanism will be implemented or how many tokens it will actually burn.