If someone were to burn 4.1 quadrillion SHIB tokens like Ethereum founder Vitalik Buterin did in 2021, the price of Shiba Inu could rise to $0.00018.
Over the years, the broader market has continued to influence the price of Shiba Inu. As a result, SHIB, which has been following in the footsteps of Bitcoin (BTC) since its launch, has witnessed a series of price increases and decreases. The meme coin is currently down 80.6% from its all-time high (ATH) of $0.00008845.
Apart from broader market trends, the price of Shiba Inu is also influenced by unique market demand and token burning. By combining increased demand and reduced supply through burning, the price of Shiba Inu can be increased, outperforming other markets.
This trend occurred in May 2021 when Ethereum co-founder Vitalik Buterin burned 4.1 quadrillion SHIB tokens, which accounted for over 41% of the total supply of Shiba Inu. Interestingly, when this burn happened, SHIB was already on an upward trend. However, the burn supported the upward trend, resulting in an ATH of $0.00008845 in October 2021.
What happens if someone burns 410 trillion Shiba Inu?
The Shiba Inu community has continued the burn movement, but at a relatively slow pace. In speculating about the potential impact of burning on the price of Shiba Inu, we assess how much SHIB could rise if another burn of a similar scale to Vitalik’s were to occur.
Shiba Inu currently has a market capitalization of $10.07 billion, with a circulating supply of approximately 589 trillion SHIB. If an entity were to burn another 4.1 quadrillion SHIB tokens, the circulating supply would be significantly reduced. Therefore, the new circulating supply would be approximately 179 trillion SHIB.
The significant reduction in supply could impact the price of Shiba Inu, regardless of whether the market capitalization changes proportionally. A corresponding increase in market capitalization would lead to a significant price increase. However, if the market capitalization remains unchanged, the price increase may not be as significant.
The price of Shiba Inu would be $0.000185 or $0.0000562
For the proportional change in market capitalization, the supply ratio between the new and old supplies is 3.29. This is achieved 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) gives a new market capitalization of $331.2 billion.
If the market capitalization of Shiba Inu increased proportionally to $331.2 billion, with a new circulating supply of 179 trillion, it would mean a new price of $0.000185. This price represents a 983% increase in the current value of Shiba Inu.
However, if the market capitalization remains at $10.07 billion even after the burn of 4.1 quadrillion tokens, the price change would be lower. With a market capitalization of $10.07 billion and a circulating supply of 179 trillion, the price would be $0.0000562. This value is still below SHIB’s ATH.
