After launching in August 2020, the Shiba Inu (SHIB) team sent half of the project’s token supply to Ethereum co-founder Vitalik Buterin. Buterin decided to destroy 90% of the tokens he received and donate the rest to charity. Buterin destroyed nearly 410 trillion tokens, causing a massive price surge.
There are currently about 589 trillion SHIB tokens in circulation. If another 400 trillion SHIB tokens are destroyed, the circulation of the asset will reach about 189 trillion. Given that SHIB's market capitalization is about $10 billion, the price per token will reach about $0.00005291.
Reaching $0.00005291 from current levels would mean an increase of about 212%. It is worth noting that $0.00005291 is still below the all-time high price of Shiba Inu. SHIB peaked at $0.00008616 in October 2021.
SHIB chief developer Shytoshi Kusama has also said that destruction alone cannot drive up asset prices. Kusama pointed out that destruction must be combined with high demand for prices to rise.
Can Shiba Inu burn 400 trillion coins?
Destroying 400 trillion SHIB coins at once may be a challenge at present. This move will require extensive participation from all SHIB holders around the world.
That being said, there are reports that the SHIB team is working on a new burn mechanism. The new burn mechanism is rumored to destroy trillions of tokens per year. If the team can significantly reduce the supply of SHIB while increasing demand for the asset, we may see another 2021-like rally for the project. As of now, we have no confirmation when the new burn mechanism will go live, or how many tokens it will actually destroy.
After launching in August 2020, the Shiba Inu (SHIB) team sent half of the project’s token supply to Ethereum co-founder Vitalik Buterin. Buterin decided to destroy 90% of the tokens he received and donated the rest to charity. Buterin destroyed nearly 410 trillion tokens, causing a massive price surge.
There are currently about 589 trillion SHIB tokens in circulation. If another 400 trillion SHIB tokens are destroyed, the circulation of the asset will reach about 189 trillion. Given that SHIB's market capitalization is about $10 billion, the price per token will reach about $0.00005291.
Reaching $0.00005291 from current levels would mean an increase of about 212%. It is worth noting that $0.00005291 is still below the all-time high price of Shiba Inu. SHIB peaked at $0.00008616 in October 2021.
SHIB chief developer Shytoshi Kusama has also said that destruction alone cannot drive up asset prices. Kusama pointed out that destruction must be combined with high demand for prices to rise.
Can Shiba Inu burn 400 trillion coins?
Destroying 400 trillion SHIB coins at once may be a challenge at present. This move will require extensive participation from all SHIB holders around the world.
That being said, there are reports that the SHIB team is working on a new burn mechanism. The new burn mechanism is rumored to destroy trillions of tokens per year. If the team can significantly reduce the supply of SHIB while increasing demand for the asset, we may see another 2021-like rally for the project. As of now, we have no confirmation when the new burn mechanism will go live, or how many tokens it will actually destroy.
