If 80% of the total supply of currency $PEPE is burned, this event will have a huge and direct impact on the currency. Here’s what could happen, based on fundamental economic principles:
1. Sharp decline in supply
Burning currencies means sending a certain number of currencies to an inaccessible wallet, permanently removing them from circulation. When 80% of #PEPE is burned, 80% of the currencies in the market will completely disappear.
If the current total supply is around 420.69 trillion coins, burning 80% means removing over 336 trillion coins from circulation. This will make the remaining number of coins (about 84 trillion) very rare compared to what it was before.
2. Potential price increase💰
The price of any financial asset is based on the principle of supply and demand.
* Supply: is the amount of currencies available in the market.
* Demand: is the desire of buyers to acquire these currencies.
When supply decreases significantly (by 80%) while demand for the currency remains the same or increases, it creates scarcity. This scarcity will drive the price of the remaining currency to rise significantly. In other words, each remaining Pepe coin will become much more valuable.
3. Impact on market sentiment
An event of this magnitude will create a huge buzz in the market and will lead to a wave of optimism and media interest. This additional attention may attract more new investors, increasing the demand for the remaining currency, thus supporting the rise in its price.
In short, burning 80% of currency $PEPE will likely lead to a massive increase in the price of the remaining currency. This rise will be a direct result of the artificial scarcity created by the burn, along with the positive impact on investor sentiment and market demand.
