Shiba Inu (SHIB): Can a 50% Burn Send It Back to the Moon?
Shiba Inu (SHIB) 🚀 has had a rollercoaster ride since its 2020 launch. The memecoin experienced a meteoric rise during the 2021 bull market, leaving early investors with a bag full of gains. However, the party has since cooled down, and SHIB is down over 84% from its all-time high.
What Fueled SHIB’s 2021 Rally?
- **Vitalik Buterin’s Token Burn:** Ethereum co-founder Vitalik Buterin’s decision to burn 90% of his SHIB holdings, which was a significant chunk of the total supply, sent shockwaves through the market. This drastic reduction in supply played a major role in SHIB’s impressive price performance.
- **General Market Sentiment:** 2021 was a euphoric time for crypto, with many projects hitting all-time highs. This positive market sentiment helped fuel SHIB’s rally.
Can a 50% Supply Burn Send SHIB Back to the Moon?
SHIB currently has about 589 trillion tokens in circulation. If 50% of the supply were to be burned, this would leave approximately 294.5 trillion tokens in circulation. Assuming the market cap remains constant at $8.01 billion, the price of each SHIB token would theoretically rise to around $0.000027, representing an increase of nearly 98.5%. While this would be a significant gain, it still falls short of SHIB’s all-time high by over 219%.
A supply burn, combined with a surge in market cap, could send SHIB’s price soaring far beyond $0.000027. However, it’s important to remember that the crypto market is notoriously volatile. No one can predict the future with certainty.
