Shiba Inu’s (SHIB) massive supply is one of the most significant barriers to its price. There are about 589 trillion SHIB tokens in circulation right now. If the asset’s price goes too high, the project’s market cap will reach unrealistic figures.
One of the most substantial catalysts for SHIB’s incredible rally in 2021 was Vitalik Buterin’s token burn. The Ethereum co-founder received half of the project’s supply upon launch. Buterin decided to burn 90% of the tokens he received and donate the remaining 10% to charity. His actions led to a significant supply dip and a price spike.
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What’s Shiba Inu’s Price If 99% Of Tokens Are Burnt?
If 99% of all SHIB tokens are burnt, the project will have about 5.89 trillion tokens. Let’s consider that the project’s market cap remains at $14.68 billion. In such a scenario, the price of each token will be $0.00249 ($14.68 billion / 5.89 trillion). Reaching $0.00249 from current price levels will translate to a growth of about 9883.9%.
If Shiba Inu’s market cap increases, the price of each token will increase by more than $0.00249.
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Can The Project Burn 99% Of All Tokens?
Source – Token Metrics
According to SHIB’s lead developer Shytoshi Kusama, burning 99% of all SHIB tokens is possible. Kusama noted that the endeavor would have been impossible a few years ago. The venture is now possible thanks to many projects banding together.
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Although the team could undertake such a massive burn, Kusama highlights that burning such a large number of tokens will have some problems. As people begin to buy more SHIB tokens under the assumption that the price will skyrocket, it will become more expensive to continue the burns. Kusama states, “staking and new use cases for not only Shib but Bone, Leash, and Treat are equally important.“
