Shiba Inu (SHIB), the meme coin that captured the world’s attention in 2021, has been on a roller coaster ride. With a colossal supply of nearly 590 trillion tokens, its price has been a subject of much speculation and debate.
One of the most talked-about strategies to potentially boost SHIB’s price is aggressive token burning. This involves sending tokens to a dead wallet, effectively removing them from circulation. Ethereum co-founder Vitalik Buterin’s massive SHIB burn in 2021 serves as a prime example of how this tactic can impact a token’s price.
If a staggering 400 trillion SHIB tokens were to be burned, the circulating supply would plummet to around 189 trillion. Assuming the market capitalization remains constant, this would theoretically propel SHIB’s price to approximately $0.000041, a substantial 215% surge from current levels. While this is a significant increase, it still falls short of SHIB’s all-time high of $0.00008616.
However, the equation might change if SHIB gains traction and wider adoption alongside the burn. Increased demand could drive up the market capitalization, potentially pushing the price beyond the projected $0.000041.
Burning 400 trillion tokens is an ambitious goal. SHIB currently has a burn mechanism in place, but the rate is too slow to achieve this target within a reasonable timeframe. The project team is reportedly developing a new burn mechanism promising to incinerate trillions of tokens annually. To eliminate 400 trillion tokens in eight years, the team would need to burn a staggering 50 trillion tokens per year.
While the potential of a price surge is enticing, it’s essential to approach such predictions with caution. The cryptocurrency market is highly volatile, and numerous factors influence a token’s price beyond supply and demand. Moreover, the SHIB team has yet to provide concrete details about the new burn mechanism or its launch date.
As with any investment, conducting thorough research and understanding the risks involved is crucial. While the prospect of burning a massive amount of SHIB is exciting for investors, it’s essential to maintain realistic expectations and diversify your portfolio.
