One of the biggest obstacles to its price is the massive supply of Shiba Inu (SHIB). There are currently approximately 589 trillion SHIB tokens in circulation. If the price of the asset becomes too high, the market capitalization of the project will reach unrealistic figures.
One of the most important catalysts of SHIB’s incredible rally in 2021 was the symbolic burning of Vitalik Buterin. The co-founder of Ethereum received half of the project’s supply during launch. Buterin decided to burn 90% of the tokens he received and donate the remaining 10% to charity. His actions led to a significant drop in supply and a spike in prices.
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What is the price of Shiba Inu if 99% of the tokens are burned?
If 99% of all SHIB tokens are burned, the project will have approximately 5.89 trillion tokens. Consider that the market capitalization of the project 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 result in growth of approximately 9,883.9%.
If the market cap of Shiba Inu 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?
According to Shytoshi Kusama, lead developer of SHIB, it is possible to burn 99% of all SHIB tokens. Kusama pointed out that this endeavor would have been impossible a few years ago. The adventure is now possible thanks to the grouping of numerous projects.
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Although the team could undertake such a massive burn, Kusama points out that burning such a large number of tokens will pose some problems. As people start buying more SHIB tokens assuming the price will skyrocket, it will become more expensive to continue burning. Kusama states“Equally important is staking and new use cases for not only Shib, but also Bone, Leash, and Treat.“