How much can the price increase after half of Shiba Inu (SHIB) tokens are burned?
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History of the SHIB burning mechanism
The supply of Shiba Inu (SHIB) was significantly reduced due to the large-scale burn by Ethereum co-founder Vitalik Buterin. He burned 90% of his SHIB tokens in 2021, a move seen as an important catalyst for the rise in SHIB's price at the time.
Currently, the circulating supply of SHIB is approximately 589 trillion tokens. If half of the tokens are burned, the circulating supply will be reduced to 294.5 trillion.
How will the price change after burning half?
Assuming the market cap remains unchanged at the current $15.87 billion:
The price of each SHIB will rise to $0.00005388, an approximate increase of 99.8% compared to the current price.
This price is still below SHIB's historical high of $0.00008616 but will significantly boost investor confidence.
If market demand increases simultaneously with the reduced circulating supply, the price may rise further.
Can burning independently drive the price?
SHIB's chief developer Shytoshi Kusama has repeatedly emphasized that burning is not a cure-all.
Burning can only provide a fundamental support for the price by reducing supply.
Without a simultaneous increase in demand, the price may struggle to reach expected heights.
Future burning mechanism plans
It is reported that the SHIB team is developing a brand new burning mechanism, expected to burn trillions of tokens annually. This mechanism can not only reduce the circulating supply but also increase market scarcity:
If combined with demand growth (such as ecosystem expansion and increased payment use cases), SHIB's price may break historical highs.
Burning half of the tokens will provide space for SHIB's price increase, but the true leap in price still relies on the support of market demand. With the introduction of the new burning mechanism, SHIB may usher in more stable long-term development. Investors should continue to pay attention to project dynamics and changes in market demand.
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