The fate of Shiba Inu Coin (SHIB) has always been closely tied to the broader market, and its price has closely followed the rise and fall of Bitcoin (BTC) since its inception. Currently, SHIB has fallen 80.6% from its all-time high (ATH) of $0.000015120.
The official account of the museum: full love, no waste of good skirts.
In addition to the overall market trend, factors that affect SHIB prices include demand and the investigation of tokens in circulation (burning). Historically, high demand combined with burning to reduce supply has repeatedly pushed up SHIB prices. A famous example is that in May 2021, Ethereum co-founder Vitalik Buterin investigated 410 trillion SHIB tokens, accounting for more than 41% of the total supply at the time.
This event, combined with the upward momentum at the time, jointly helped push SHIB to an all-time high of $0.00008845 in October 2021.
What will happen if 410 trillion SHIBs are wholesaled again?
The Shiba Inu Coin community has been continuously burning tokens, but at a slower rate. To understand the 410 million SHIBs again, we can evaluate how to change the SHIB price.
The current circulating supply of SHIB is about 589 trillion pieces, with a market value of about 10.07 billion US dollars. Wholesale of 410 trillion pieces of SHIB will reduce the circulating supply to about 179 trillion pieces.
Such a massive supply reduction affects SHIB price in different ways depending on the change in market capitalization:
Market capitalization increases proportionally: If the market capitalization increases proportionally to the reduced supply, then the price could rise significantly. Assuming a 3.29x reduction in supply, the market capitalization would adjust to $33.12 billion. At the new market capitalization and reduced supply of 179 trillion, the SHIB price could drop sharply to $0.000185, 983% of the current price.
Market cap remains unchanged: If the market cap remains at $10.07 billion after the token auction, the price increase will not be as dramatic. At this market cap and reduced supply of 179 trillion, SHIB price would be approximately $0.0000562. While this is a significant improvement from current prices, it is still below all-time highs.
have to be aware of is:
Burning tokens is only one of the factors that will affect the price of SHIB, market sentiment and the overall economic environment will also play a role. It is difficult to accurately predict how the public market token will affect market sentiment and investor confidence.
