The Shiba Inu (SHIB) team sent half of the project’s token supply to Ethereum co-founder Vitalik Buterin when it launched in August 2020. Buterin decided to burn 90% of the tokens he received and donated the rest to charity. The destruction of nearly 410 trillion tokens caused a significant price surge.
Currently, there are approximately 589 trillion circulating SHIB tokens. If another 400 trillion SHIB tokens were burned, the asset’s circulation would be reduced to about 189 trillion. Given that SHIB’s market value is around $10 billion, the price per token would reach approximately $0.00005291.
Reaching $0.00005291 from the current level would represent a growth of about 212%. It is worth noting that $0.00005291 is still lower than Shiba Inu’s all-time high price of $0.00008616 in October 2021.
SHIB’s chief developer Shytoshi Kusama has also stated that burning alone cannot drive up the asset’s price. Kusama pointed out that burning must be combined with high demand for the price to rise.
Can Shiba Inu burn 400 trillion coins?
Burning 400 trillion SHIB tokens at once is currently a challenge. This would require widespread participation from all SHIB holders around the world.
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 destroy tens of trillions of tokens each year. If the team is able to significantly reduce SHIB’s supply while increasing demand for the asset, we may see a rebound similar to that of 2021. So far, we have not confirmed when the new burning mechanism will be launched or how many tokens it will actually burn.
