CoinDesk Report:
If someone were to burn 410 trillion SHIB, similar to Ethereum co-founder Vitalik Buterin in 2021, Shiba Inu’s price could potentially rise to $0.00018.
Over the years, broader market trends have consistently influenced Shiba Inu’s price. Thus, SHIB, which has followed in the footsteps of Bitcoin (BTC) since its inception, has witnessed a series of price increases and declines. The meme coin currently stands 80.6% below its ATH of $0.00008845.
In addition to broader market trends, Shiba Inu’s price dynamics are also shaped by unique market demands and token burns. A proper combination of burning to increase demand and reduce supply can elevate Shiba Inu’s price, outperforming other markets.
This trend was evident in May 2021 when Ethereum co-founder Vitalik Buterin burned 410 trillion SHIB tokens, which accounted for over 41% of Shiba Inu’s total supply. Interestingly, SHIB was already on an upward trajectory when the burn occurred. However, the burn fueled further upward momentum, leading to an ATH of $0.00008845 in October 2021.
What if someone burns 410T Shiba Inu?
The Shiba Inu community has continued its burn campaign, albeit at a relatively slow pace. Speculation about the potential impact of burns on Shiba Inu’s price leads us to assess how much SHIB could rise if a burn similar in scale to Vitalik’s were to occur again.
Shiba Inu has a market capitalization of $10.07 billion, with its circulating supply currently around 589 trillion SHIB. If an entity were to burn another 410 trillion SHIB tokens, the circulating supply would decrease significantly, resulting in a new circulating supply of approximately 179 trillion SHIB.
A substantial reduction in supply could impact Shiba Inu’s price, regardless of proportional changes in market capitalization. A corresponding increase in market capitalization would lead to a significant price surge. However, if the market capitalization remains unchanged, the price increase may not be as pronounced.
Shiba Inu’s prices could be $0.000185 or $0.0000562.
Regarding the proportional change in market capitalization, the supply ratio between old and new supplies is 3.29. This is derived by dividing the old supply (589 trillion) by the new supply (179 trillion). Multiplying the current market capitalization ($10.07 billion) by the supply ratio (3.29) yields a new market capitalization of $33.12 billion.
If Shiba Inu’s market capitalization were to increase proportionally to $33.12 billion, with a new circulating supply of 179 trillion SHIB, this would imply a new price of $0.000185. This price marks a 983% increase in Shiba Inu’s current value.
However, if the market capitalization remains at $10.07 billion even after burning 410 trillion tokens, the price change would be lower. With a market capitalization of $10.07 billion and a circulating supply of 179 trillion SHIB, the price would be $0.0000562. This figure remains below SHIB’s historical peak.