Shiba Inu (SHIB) has had ample success in its four short years. During the 2021 bull run, SHIB’s price skyrocketed, rallying by many million percent. Early investors reaped millions of dollars in profit.
One of the most significant drivers of SHIB’s incredible rally was Ethereum co-founder Vitalik Buterin’s massive token burn. Although Buterin received half of SHIB’s supply upon launch, he decided to burn 90% of the coins he received. This led to a significant supply drop and, consequently, a price increase.
Also Read: How Much Shiba Inu Is Required To Make $1 Billion?
Current Circulation and Challenges
Shiba Inu (SHIB) still has about 589 trillion tokens in circulation. The large number of tokens makes it difficult for SHIB to hit higher prices, as the project’s market cap would become unrealistically large if it did.
Price Impact of 99% Token Burn
If 99% of SHIB’s supply is burnt, the project will have around 5.9 trillion tokens. Given that the project’s market cap remains the same, the price of each token would reach nearly $0.0014. The price increase would translate to a rally of about 9900% from current levels.
Also Read: Shiba Inu: SHIB’s Price If Its Market Cap Equals Ethereum’s
While SHIB has rallied by more than 9900% 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 destroyed yearly is minuscule compared to the project’s supply. The SHIB team reportedly works on a new burn mechanism, which is rumoured to burn trillions of tokens yearly.
Also Read: WIF Skyrockets 18.7% & Shiba Inu’s Major Move in Memecoin Market!
If the team substantially reduces the project’s supply, we may witness another 2021-like rally. We do not have any official word on when the team may launch the new burn mechanism.