The Shiba Inu [SHIB] ecosystem has been in a major price slump over the last couple of months. With several assets hitting an all-time high, SHIB stood on the sidelines. But the meme coin has the potential to jump back up. While some believe network updates can push the price of SHIB, a few others have their bets on SHIB’s burn mechanism.
The Shiba Inu market had a major shake-up back in 2021. Co-founder of Ethereum Vitalik Buterin sent 410 trillion SHIB tokens to a dead wallet in May of that year. Around 41% of Shiba Inu’s total supply was made up of these tokens. The burn pushed SHIB to an all-time high of $0.00008845 ATH in October 2021 as the asset was already experiencing an upswing. At press time, SHIB is trading at $0.00001382 with a 10% dip over the last 24 hours. The meme coin is currently 84% below its all-time high.
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Will Shiba Inu Hit an ATH if 410 Trillion Tokens Is Burnt Now?
Shiba Inu’s circulation supply is now at 589 trillion SHIB. The market capitalization of SHIB stands at $10.07 billion. The amount of SHIB tokens in circulation would drastically decrease if some entity burnt an additional 410 trillion of them. The new circulating supply would be around 179 trillion SHIB.
The market cap of $33.12 billion is obtained by multiplying the supply ratio of 3.29 by the current market cap of $10.07 billion. Shiba Inu’s new circulating supply of 179 trillion would equate to a new price of $0.000185. This is if its market capitalization grew to $33.12 billion with par to the rate of supply change. The current value of a SHIB has increased by 983% at this pricing.
The price impact will be less if the market cap stays at $10.07 billion following the burning of 410 trillion tokens. With a market capitalization of $10.07 billion and a circulating supply of 179 trillion, the price of Shiba Inu would be $0.0000562. Even now, this number is below SHIB’s peak. It is unclear whether Buterin will burn this sort of SHIB again, but it is also uncertain if any other body else will do so.
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