The huge supply of Shiba Inu (SHIB) is one of the most important barriers to its price. There are currently about 589 trillion SHIB tokens in circulation. If the price of the asset increases too much, the project's market capitalization will reach unrealistic numbers.
One of the most important catalysts for SHIB’s incredible price surge in 2021 was Vitalik Buterin’s token burn. The Ethereum co-founder received half of the project’s supply at launch. Buterin decided to burn 90% of the tokens he received and donate the remaining 10% to charity. His action led to a significant decrease in supply and a spike in price.
How Much Is A Shiba Inu Worth 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 project's market cap 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 translate to about 9883.9% growth. If the Shiba Inu market cap increases, the price of each token would increase by more than $0.00249.
Can a Project Burn 99% of Total Tokens?
According to SHIB core developer Shytoshi Kusama, burning 99% of all SHIB tokens is possible. Kusama noted that this effort would have been impossible a few years ago. This project is now possible thanks to the collaboration of many projects.
While the team could do such a large burn, Kusama emphasized that burning such a large number of tokens would have some problems. As people start buying more SHIB tokens assuming the price will skyrocket, it will become more expensive to continue burning. Kusama stated, “staking and new use cases are equally important not only for Shib but also for Bone, Leash, and Treat.”
