Shiba Inu (SHIB) has been very successful in its four short years. During the 2021 bull run, the price of SHIB skyrocketed, increasing by many millions of percent. Early investors made millions in profits.
One of the key drivers of the incredible SHIB rally was the massive token burn by Ethereum co-founder Vitalik Buterin. Although Buterin received half of the SHIB supply at launch, he decided to burn 90% of the coins he received. This led to a significant supply drop and, as a result, a price increase.
Also read: How much Shiba Inu does it take to make $1 billion?
Current edition and challenges
Shiba Inu (SHIB) still has about 589 trillion tokens in circulation. The large number of tokens makes it difficult for SHIB to achieve higher prices, otherwise the project’s market capitalization would become unrealistically high.
Price Impact of 99% Token Burn
If 99% of the SHIB supply is burned, the project will have about 5.9 trillion tokens. If the project’s market cap remains the same, the price of each token would reach almost $0.0014. The price increase would correspond to an increase of about 9900% from current levels.
Also read: Shiba Inu: SHIB price if its market cap matches Ethereum
Although SHIB has gained more than 9,900% in the past, burning 99% of its supply is no easy task.
Existing and future burn mechanisms
Shiba Inu (SHIB) already has a burn mechanism, but the number of tokens burned annually is negligible compared to the project’s supply. The SHIB team is reportedly working on a new burn mechanism that is rumored to burn trillions of tokens annually.
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If the team significantly reduces the project’s supply, we could see another rally like in 2021. We have no official communication on when the team might launch the new burn mechanism.
Shiba Inu
