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Shiba Inu price has the potential to rise to the $0.00018 territory if someone burns 410 trillion SHIB like Ethereum founder Vitalik Buterin did in 2021.
The broader market has continued to dictate Shiba Inu’s price over the years. As a result, SHIB, which has followed in Bitcoin’s (BTC) footsteps since launch, has witnessed a series of price upswings and declines. The meme coin is currently 80.6% down from its ATH of $0.00008845.
Besides the broader market trend, Shiba Inu price is also a product of unique market demand and token burns. A proper combination of increased demand and reduced supply through burns could bolster Shiba Inu price to outperform the rest of the market.
This trend occurred in May 2021, when Ethereum co-founder Vitalik Buterin burned 410 trillion SHIB tokens. These tokens represented over 41% of Shiba Inu’s total supply. Interestingly, SHIB was already on an uptrend when this burn occurred. However, the burn bolstered the uptrend, leading to the $0.00008845 ATH in October 2021.
What if Someone Burned 410T Shiba Inu?
The Shiba Inu community has sustained the burn campaign, but the rate of burns has been rather slow. Amid speculations around the potential effect of burns on Shiba Inu price, we assessed how much SHIB could rise if a burn similar in magnitude to Vitalik’s transaction ever occurred again.
With a market cap of $10.07 billion, Shiba Inu’s circulating supply currently stands at about 589 trillion SHIB. If an entity burned another 410 trillion SHIB tokens, the circulating supply would drop significantly. Consequently, the new circulating supply would be around 179 trillion SHIB.
This massive reduction in supply would likely affect Shiba Inu price, whether or not the market cap changes proportionally. A corresponding increase in market cap would lead to a much higher price. However, if the market cap remains static, the price upsurge might not be as significant.
A Shiba Inu Price at $0.000185 or $0.0000562
For a proportional change in market cap, the supply ratio of the old and new supplies stands at 3.29. This is achieved by dividing the old supply (589 trillion) by the new supply (179 trillion). Multiplying the current market cap ($10.07 billion) by the supply ratio (3.29) gives a new market cap of $33.12 billion.
If Shiba Inu’s market cap increased proportionally to the rate of supply change to $33.12 billion, and its new circulating supply stood at 179 trillion, then this translates to a new price of $0.000185. This price marks a 983% increase in Shiba Inu’s current value.
However, if the market cap remains at the $10.07 billion mark after the 410 trillion tokens burn, the price change will be lower. At a $10.07 billion market cap and a circulating supply of 179 trillion, Shiba Inu price would sit at $0.0000562. This value is still lower than SHIB’s all-time high.