SHIB Burns and Market Cap Dynamics Could Lead to a 983% Price Increase

Shiba Inu (SHIB), which has mirrored Bitcoin’s (BTC) trajectory since its launch, has experienced numerous price fluctuations. Currently, the meme coin is down 84.29% from its all-time high (ATH) of $0.00008845. Notably, SHIB’s price dynamics are influenced not only by broader market trends but also by unique market demand and token burns. A strategic combination of increased demand and reduced supply could significantly enhance SHIB’s market performance.

In May 2021, Ethereum co-founder Vitalik Buterin burned 410 trillion SHIB tokens, accounting for over 41% of the total supply. This significant event occurred while SHIB was already on an upward trend, which was further accelerated by the burn, ultimately leading to the ATH of $0.00008845 in October 2021.

If a similar burn occurred today, the impact on SHIB’s price would be noteworthy. The current supply ratio between the old supply (589 trillion) and a hypothetical new supply (179 trillion) stands at 3.29. This is calculated by dividing the old supply by the new supply. By applying this ratio to the current market cap of $10.07 billion, SHIB’s market cap would potentially rise to $33.12 billion. Consequently, if the market cap increased proportionally to $33.12 billion with a new circulating supply of 179 trillion, SHIB’s price could reach $0.000185, marking a 983% increase from its current value.

However, if the market cap remains constant at $10.07 billion post-burn, SHIB’s price would be lower. With a circulating supply of 179 trillion, the price would sit at $0.0000562, still below its ATH. Notably, SHIB’s burn rate has seen a significant increase, as reported by the Shibburn platform. The burn rate surged by over 348%, with 21,508,945 SHIB transferred to unspendable wallets recently.

The most recent burn transactions involved various amounts burned at different times. For instance, 120,000 SHIBs were burned 13 hours ago, followed by a transaction of 21,315,658 SHIB. Twenty-three hours ago, another 64,495 SHIB were burned. Additionally, two days ago, 296,433 SHIB and 1,000,000 SHIB were burned. Three days ago, multiple transactions occurred, with amounts ranging from 53 SHIB to 2,500,000 SHIB.