Shiba Inu (SHIB) had one of the greatest runs during the 2021 bull run. The asset’s price rallied by many million percent within a few months after its launch. Early investors made millions of dollars in profit with minimal investments. The rags-to-riches stories around SHIB solidified its status as a “millionaire-maker.”
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Why Did Shiba Inu Rally So High In 2021?
One of the most significant catalysts for SHIB’s incredible rally in 2021 was Vitalik Buterin‘s massive token burn. The Ethereum co-founder received half of SHIB’s supply upon launch. Buterin decided to burn 90% of the tokens he received. Buterin gave the remaining 10% of the tokens to charity.
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Buterin’s actions led to a substantial dip in the asset’s supply. At the time SHIB’s demand was pretty high as well. Both developments led to a significant price rally for the token.
What Is The Asset’s Price If 90% Of The Tokens Are Burned?
There are about 589 trillion SHIB tokens in circulation right now. If 90% of tokens (530.1 trillion) are burned, the project will have about 59 trillion coins in circulation.
Let’s consider that SHIB’s market cap remains the same at $9.17 billion. In this scenario, the price of each SHIB token will be around $0.000155. Hitting $0.000155 will be a new all-time high for SHIB. The price of each coin will increase by around 896.14% from current levels.
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If Shiba Inu’s (SHIB) market cap increases from current levels, the price of each token will go much higher than 896.14%. Lead developer Shytoshi Kusama also pointed out that burns alone will not push the asset’s price. Burns have to be met with a rise in demand as well.
