- Since its launch, SHIB has burnt nearly half of its total supply.
- A reduction in supply could have some impact on the memecoin’s price
Shiba Inu’s [SHIB] team has been aggressively driving the memecoin’s deflationary plans by burning billions of tokens. When it launched in 2020, SHIB’s total supply was 1 quadrillion (1000 trillion tokens).
Ethereum’s [ETH] founder got about half of this supply, but opted to burn 90% of it in 2021. At the time, he claimed that he didn’t want the ‘power’ that came with holding such a massive supply. Part of his transaction note read,
“I’ve decided to burn 90% of the remaining Shiba tokens in my wallet…Please do not give me coins or power in your project…I don’t *want* to be a locus of power of that kind.”
Buterin sent the rest to charity and SHIB pumped by over 800% over the same period, minting millionaires.
What if the team burned 30% of the current SHIB supply, how high can the token price soar then?
SHIB’s next price level
Collectively, Buterin’s move and the team’s burning efforts have shrunk SHIB’s supply from 1000 trillion to its press time figure of 589 trillion.
There was also high demand for the dog-themed memecoin when Buterin burnt it, propping the overall value as the supply shrunk.
Source: Shibburn
Now, let’s assume the current market cap of $14 billion remains constant, but the token supply is reduced by 30% (from 589 trillion to 412.3 trillion). Each token will now be worth $0.00003394 ($14 billion divided by 412.3 trillion tokens).
At the time of writing, SHIB was valued at $0.00002404, translating to a 41% price change if SHIB’s new value hits $0.00003394.
So, if the market cap remains unchanged, SHIB would theoretically need to burn 295 trillion tokens to pump by 100%.
According to the SHIB burn tracker, about 5 million tokens were torched in the last 24 hours alone.
Assuming that’s the average burn rate, it would take over 161K years to burn 295 trillion tokens to achieve a 100% price surge. That’s why SHIB’s deflationary model should be ramped up for holders to feel the benefits.
That being said, SHIB’s price dropped by 16% in the last seven days, amid spiked sell pressure across exchanges. This could mute the memecoin’s price into the holiday season.
