Shiba Inu [SHIB] Ecosystem has seen a significant price drop over the last few months. SHIB was a spectator as many assets hit all-time records. The meme coin could jump up again. Some believe that network updates will push SHIB prices up, while others bet on the burn mechanism of SHIB.
In 2021 the Shiba Inu industry experienced major changes. Vitalik Buterin (co-founder Ethereum) sent 410 trillion SHIB Tokens to a wallet that was dead in May. This token was responsible for 41% Shiba Inu’s total supply. SHIB’s ATH reached an unprecedented high in October of 2021 at $0.00008845, due to the burn. The asset had already been experiencing a rise. SHIB was trading at $0.00001382 as of press time. This is a drop of 10% over the past 24 hours. The meme currency is now 84% lower than its highest point.
Also Read: Cryptocurrency Market: Shiba Inu & Dogecoin Fall 15%
Shiba Inu Will Hit ATH If 410 Trillion Tokens Are Burned Now?
Shiba Inu circulation stock is currently at 589 trillion Shiba Inu. SHIB’s market cap is $10.07 Billion. SHIB tokens will be in a much smaller number if someone burns an additional 410 billion of them. This would result in a new supply of around 179 trillion SHIB.
Market cap is calculated by multiplying supply ratio 3.29 with the current market value of $10.07 Billion. Shiba Inu was a new circulating stock of 179 billion. This would translate to a brand new price of $0.000185. It would mean that its capitalization would increase to $33.12 Billion with the same rate as supply changes. This pricing has seen the value of SHIBs increase by 983 %.
After burning 410 trillion coins, the impact on the price will be reduced if the capitalization stays at $10.07 Billion. Shiba Inu’s price would be $0.0000562 with a $10.07billion market cap and a supply of 179trillion tokens. This number, even now is lower than SHIB’s peak. Buterin may burn SHIB of this type again. However, it’s unclear if anyone else will.
Also Read: Shiba Inu: Here’s When SHIB Could Delete Its Next Zero
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Source: watcher.guru