Shiba Inu: What will the price of SHIB be if 50% of the tokens are burned 🔥🔥
Shiba Inu ($SHIB) is one of the most popular cryptocurrency projects on the market. This asset had an incredible price surge during the 2021 bull run. The price of SHIB has increased by millions of percent since its launch in August 2020 until it reached its all-time high in October 2021.
📈 Why Did Shiba Inu Price Surge So High in 2021?
One of the most important factors leading to the incredible price surge of SHIB in 2021 was the massive token burn by Vitalik Buterin. The co-founder of Ethereum received half of the SHIB supply at launch. Buterin decided to burn 90% of the tokens he received and donated the rest to charity.
Buterin's action led to a significant reduction in the supply of SHIB. At that time, the demand for SHIB was also very high. Both of these developments led to a significant price increase for this dog-themed cryptocurrency. Early investors made millions of dollars in profit with minimal investments.
🔥 What will the price of the asset be if 50% of the tokens are burned?
Currently, there are about 589 trillion SHIB tokens in circulation. The project will have about 294.5 trillion tokens in circulation if 50% of the tokens are burned.
Consider that the market capitalization of SHIB remains at $15.87 billion. In this scenario, the price of each token would reach $0.00005388.
To reach $0.00005388 from the current price would require an increase of about 99.8%. This increase seems significant, but it has not yet reached SHIB's all-time high of $0.00008616.
Shiba Inu's lead developer, Shytoshi Kusama, has also emphasized that simply burning tokens will not push the price of SHIB up. The burn must be accompanied by an increase in demand for a significant price increase.
The SHIB team is reportedly working on a new burn mechanism, which is said to destroy millions of tokens each year. The new burn mechanism could help push SHIB's price to new heights.
