One of the biggest obstacles to the price of Shiba Inu (SHIB) is its massive supply. The current circulating SHIB tokens are around 589 trillion. If the asset price is too high, the project's market capitalization will reach an unrealistic figure.
One of the most important catalysts for SHIB's astounding rise in 2021 was the token burning by Vitalik Buterin. The Ethereum co-founder was given half the supply of the project at launch. Buterin decided to burn 90% of the tokens he received and donate the remaining 10% to charity. His actions led to a significant decrease in supply and a surge in price.
If 99% of the tokens are burned, what will be the price of Shiba Inu?
If 99% of SHIB tokens are burned, the project will have around 5.89 billion tokens. Assuming the project's market capitalization remains at $14.68 billion, the price per token will be $0.00249 ($14.68 billion / 5.89 billion). Reaching $0.00249 from the current price level would mean a growth of around 9883.9%.
If the Shiba Inu's market capitalization increases, the price per token will rise above $0.00249.
Can the project burn 99% of all tokens?
According to SHIB's lead developer Shytoshi Kusama, burning 99% of SHIB tokens is possible. Kusama pointed out that this effort was impossible a few years ago. Now, due to the collaboration of many projects, this plan has become feasible.
Although the team can carry out such a large-scale burning, Kusama emphasizes that burning such a large amount of tokens will bring some problems. As people start to buy more SHIB tokens and believe the price will skyrocket, the cost of continuing the burning will become more expensive. Kusama stated, "Not only Shib, but the staking and new use cases of Bone, Leash, and Treat are equally important."
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