How much can the price of Shiba Inu Coin increase after half of it is burned?
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The history of the SHIB burning mechanism
The supply of Shiba Inu Coin (SHIB) was significantly reduced due to the large-scale burning by Ethereum co-founder Vitalik Buterin. In 2021, he burned 90% of his SHIB tokens, which was seen as an important catalyst for the increase in SHIB's price at that time.
Currently, the circulating supply of SHIB is about 589 trillion tokens. If half of the tokens are burned, the circulating supply will decrease to 294.5 trillion.
How will the price change after burning half?
Assuming the market cap remains unchanged at the current $15.87 billion, then:
The price of each SHIB will rise to $0.00005388, an increase of approximately 99.8% compared to the current price.
This price is still below SHIB's historical high of $0.00008616, but it will significantly boost investor confidence.
If market demand increases while the circulating supply decreases, the price may rise further.
Can burning independently drive the price?
SHIB's chief developer Shytoshi Kusama has repeatedly emphasized: burning is not a panacea.
Burning can only provide a fundamental support for prices by reducing supply.
Without simultaneous growth in demand, it may be difficult for prices to reach the 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 circulating supply but also enhance market scarcity:
If combined with demand growth (such as ecosystem expansion and increased payment use cases), the price of SHIB may break historical highs.
Burning half of the tokens will provide room for the increase in SHIB's price, but the true leap in price will still rely on market demand support. With the introduction of new burning mechanisms, SHIB may usher in more stable long-term development. Investors need to continuously pay attention to project dynamics and changes in market demand.
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