Shiba Inu’s Hypothetical Scenario Without Vitalik Buterin’s Burn

At its launch, the Shiba Inu (SHIB) team allocated nearly half of the circulating supply to Ethereum (ETH) co-founder Vitalik Buterin. However, Shiba Inu chose not to sell or dump these tokens on the market. Instead, Shiba Inu burned 90% of the total amount, with the remaining 10%, valued at almost $1.14 billion, designated for charitable purposes. Notably, it went to the India COVID-Crypto Relief Fund, established by Sandeep Nailwal, co-founder of Polygon (MATIC).

Recently, SHIB’s burn tracker, Shibburn, explored the scenario of what would have occurred if Buterin hadn’t burned his SHIB tokens. According to the burn tracker’s assessment, if Buterin had retained his tokens without burning them, Shiba Inu’s price would have reached a peak of $0.00004225, as opposed to the actual peak of $0.00008845, and would have been represented as a 52% decrease.

What if Vitalik Buterin had sold the 50% of the $SHIB supply instead, or if the 50% had never been sent to him? The price could have reached $0.00004225 when Market Cap was at its All-Time High instead of $0.00008845. If it had the same demand. #SupplyAndDemand pic.twitter.com/eCGTeotCFX
— Shibburn (@shibburn) September 11, 2023

Even though Buterin’s act of burning nearly 41% of Shiba Inu’s (SHIB) total supply contributed to a supply reduction, Shibburn had previously highlighted that SHIB had already started its ascent before Buterin’s burn transaction. Nevertheless, SHIB’s price experienced a significant surge following Buterin’s well-known burn. This burn, coupled with a more extensive cryptocurrency market surge, drove SHIB to its record high of $0.00008845 in October 2021.

Can Shiba Inu Replicate The Process of Burning Trillions of Tokens?

The SHIB team has expressed their dedication to developing a new burn mechanism for the Shibarium network, which has garnered attention from SHIB influencers for its potential to burn trillions of tokens annually. While the official launch date has not been announced, the existence of Shibarium has heightened expectations for the introduction of this mechanism in the near future.

If the upcoming burn mechanism proves successful in burning trillions of tokens annually, it could have a significant impact on reducing SHIB’s overall supply. However, it is crucial to note, as emphasized by lead developer Shytoshi Kusama, that burns alone may not necessarily drive up the asset’s price. Increased demand must accompany burns for prices to experience growth.

As of the current moment, Shiba Inu (SHIB) has witnessed a significant increase in its burn rate, surging by 333.44% and resulting in the destruction of 181.8 million tokens within the past 24 hours. On the other hand, SHIB’s trading price stands at $0.000007063, indicating a 4.59% decline over the same 24-hour period.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

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