An analysis based on provided content explores the potential price impact if Shiba Inu were to execute another burn equivalent to Vitalik Buterin‘s 2021 event. It notes that such a burn would reduce circulating supply dramatically, potentially increasing the token’s price assuming market capitalization remains constant. However, the analysis concludes that burns alone, according to a project developer, are insufficient to drive the asset back to its previous all-time highs without broader adoption.
A hypothetical repeat of Vitalik Buterin‘s 2021 token burn could significantly alter Shiba Inu‘s supply dynamics. Buterin’s original massive token burn removed 410 trillion SHIB from circulation after he received half of the initial supply.
A similar burn today would cut the current circulating supply of roughly 589 trillion down to approximately 179 trillion tokens. Assuming a steady market capitalization of $3.5 billion, this reduced supply would theoretically push the token’s price to $0.00001955. That figure represents a potential increase of about 223.5% from current price levels, which is notably less than the asset’s historic multi-million percent rally.
The projected price still remains far below Shiba Inu‘s all-time high of $0.00008616 from the 2021 bull run. Lead developer Shytoshi Kusama has emphasized that burns alone cannot drive the asset’s price to such heights. Kusama stated that “SHIB needs more adoption for its price to see larger figures”.
While token burns can provide complimentary support, substantial gains require wider ecosystem adoption. The analysis underscores the difference between simple supply reduction and the market validation driven by Buterin’s original action.
