The potential for Shiba Inu’s price to reach the $0.00018 territory exists if someone were to burn 410 trillion SHIB tokens, similar to what Ethereum founder Vitalik Buterin did in 2021.
Shiba Inu’s price has historically been influenced by the broader market trends. Following in Bitcoin’s footsteps since its inception, SHIB has experienced fluctuations in price, currently sitting at an 80.6% decrease from its all-time high of $0.00008845.
In addition to market trends, Shiba Inu’s price is impacted by unique market demand and token burns. A combination of increased demand and reduced supply through burns could potentially boost Shiba Inu’s price above the rest of the market.
In May 2021, Vitalik Buterin burned 410 trillion SHIB tokens, accounting for over 41% of Shiba Inu’s total supply. This burn occurred during an upward trend for SHIB, contributing to the all-time high of $0.00008845 in October 2021.
The Shiba Inu community has continued the burn campaign, albeit at a slow pace. Speculations surrounding the impact of burns on Shiba Inu’s price have led to discussions on the potential outcome of a similar burn to Vitalik’s transaction.
With a current market cap of $10.07 billion and a circulating supply of approximately 589 trillion SHIB tokens, burning an additional 410 trillion SHIB tokens would significantly reduce the circulating supply to around 179 trillion SHIB.
This substantial reduction in supply could potentially impact Shiba Inu’s price, particularly if the market cap changes proportionally. A proportional increase in market cap would result in a higher price, while a static market cap might not lead to as significant of a price increase.
Assuming a proportional change in market cap, with a supply ratio of 3.29, the resulting new price for Shiba Inu could be $0.000185, representing a 983% increase from its current value. However, if the market cap remains at $10.07 billion post-burn, the price could be lower at $0.0000562, still below SHIB’s all-time high.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, as The Crypto Basic is not liable for any financial losses.