Shiba Inu: What is the price of SHIB if 50% of the tokens are destroyed?

One of the most significant catalysts for SHIB’s stunning rise in 2021 was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of the token supply when SHIB launched. Buterin decided to burn 90% of the tokens he received and donate the remaining tokens to charity.

There are currently approximately 589 trillion SHIB tokens in circulation. If 50% of tokens were burned, the project would have approximately 294.5 trillion tokens in circulation. Assume SHIB's market cap remains at $15.87 billion. In this case, the price per token would reach $0.00005388.

Reaching $0.00005388 from current price levels would represent a gain of approximately 99.8%. This increase may look significant, but it is still below SHIB’s all-time high of $0.00008616.

If SHIB’s market cap increases while its circulating supply decreases, the asset’s price could be significantly higher than $0.00005388.

Shytoshi Kusama, the lead developer of Shiba Inu, also emphasized that burning alone will not drive up the price of SHIB. The destruction must be combined with increased demand to significantly increase the price.

The SHIB team is reportedly working on a new burning mechanism that is rumored to destroy trillions of tokens every year. The new burn mechanism could help push the price of SHIB to new highs.