The massive supply of Shiba Inu (SHIB) is one of the major barriers to its price. Currently, there are about 589 trillion SHIB tokens in circulation. If the asset's price rises too high, the project's market capitalization will reach an unrealistic figure.
One of the most important catalysts for SHIB's incredible price surge in 2021 was the token burn by Vitalik Buterin. The co-founder of Ethereum received half of the project's supply at launch. Buterin decided to burn 90% of the tokens he received and donated the remaining 10% to charity. His action led to a significant decrease in supply and a price spike.
What Is The Price Of Shiba Inu If 99% Of Tokens Are Burned?
If 99% of all SHIB tokens are burned, the project will have about 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 would be $0.00249 ($14.68 billion / 5.89 trillion). Reaching $0.00249 from the current price would equate to a growth of about 9883.9%. If the market capitalization of Shiba Inu increases, the price of each token will rise above $0.00249.
Can The Project Burn 99% Of The Total Tokens?
According to SHIB's lead developer, Shytoshi Kusama, burning 99% of all SHIB tokens is possible. Kusama notes that this effort was impossible a few years ago. This project is now feasible thanks to many collaborative projects.
Although the team may be able to execute such a large burn, Kusama emphasizes that burning such a large number of tokens would have some issues. As people start buying more SHIB tokens with the assumption that the price will skyrocket, continuing to burn will become more expensive. Kusama stated, 'staking and new use cases not only for Shib but also for Bone, Leash, and Treat are equally important.'
