CoinJee.com Reports:
Since its launch in August 2020, the Shiba Inu (SHIB) team has sent half of the token supply of the project to Ethereum co-founder Vitalik Buterin. Buterin decided to burn 90% of the tokens he received and donate the remaining to charity. Buterin burned nearly 410 quadrillion tokens, causing a significant price surge.
Currently, there are approximately 5.89 quadrillion circulating SHIB tokens. If another 4 quadrillion SHIB tokens are burned, the circulating supply of the asset will reach approximately 1.89 quadrillion. Considering that SHIB has a market value of around $10 billion, the price per token would reach approximately $0.00005291.
Reaching $0.00005291 from the current level would mean a growth of around 212%. It is worth noting that $0.00005291 is still below the all-time high price of Shiba Inu. SHIB reached a peak of $0.00008616 in October 2021.
SHIB’s lead developer, Shytoshi Kusama, has also stated that burning alone cannot boost the asset’s price. Kusama points out that burning must be combined with high demand for the price to rise.
Can Shiba Inu burn 4 quadrillion coins?
Burning 4 quadrillion SHIB coins at once is currently a challenge. This measure would require widespread participation from all SHIB holders worldwide.
That being said, there are reports that the SHIB team is exploring a new burning mechanism. It is rumored that the new burning mechanism will burn trillions of tokens annually. If the team can significantly reduce the supply of SHIB while increasing demand for the asset, we may see a rebound similar to what happened in 2021. So far, we have not confirmed when the new burning mechanism will be launched or how many tokens it will actually burn.