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, causing a significant price surge.
Currently, there are about 589 trillion SHIB tokens in circulation. If another 400 trillion SHIB tokens are burned, it would bring the circulating supply of the asset to approximately 189 trillion. Considering SHIB’s market value is around $10 billion, this would make the price of each coin around $0.00005291.
Reaching $0.00005291 from the current levels would translate to approximately a 212% increase. It is worth noting that $0.00005291 is still below Shiba Inu’s all-time high. SHIB reached its peak at $0.00008616 in October 2021.
SHIB’s lead developer, Ryoshi, also stated that burning alone will not drive up the asset’s price. Ryoshi pointed out that burning must be combined with high demand for the price to rebound.
Can Shiba Inu burn 400 trillion coins?
Burning 400 trillion coins at once may be a challenge. This would attract massive participation from SHIB holders worldwide.
However, there are reports that the SHIB team is exploring a new burning mechanism. The rumored new Myanmar mechanism will burn trillions of tokens annually. If the team is able to significantly reduce SHIB’s supply while increasing demand for the asset, we might see a similar rebound for the project in 2021. So far, we have not confirmed when the new burning mechanism will be launched or how many tokens it will actually burn.
