SHIB Price Could Pump 41% If the Team Burns 30% of the Current Supply

Shiba Inu’s [SHIB] team has been aggressively driving the memecoin’s deflationary plans by burning billions of tokens. When it launched in 2020

Shiba Inu’s (CRYPTO: SHIB) burning efforts have been a major talking point in the crypto community. When SHIB launched in 2020, its total supply was 1 quadrillion (1,000 trillion) tokens.

Half of this supply was sent to Ethereum’s (CRYPTO: ETH) founder, Vitalik Buterin, who burned 90% of it in 2021.

Buterin stated that he didn’t want the “power” that came with holding such a massive token supply, opting to send the rest to charity.

Collectively, Buterin’s move and the SHIB team’s burning efforts have reduced the token’s total supply from 1 quadrillion to 589 trillion at press time.

What if the SHIB team burned 30% of the current token supply? To put things into perspective, let’s assume that SHIB’s market cap remains at $14 billion, But the token supply is reduced by 30% (from 589 trillion to 412.3 trillion).

In this scenario, each SHIB token would be valued at $0.00003394 ($14 billion divided by 412.3 trillion tokens).

At the time of writing, SHIB was valued at $0.00002404, which would indicate a 41% price increase if SHIB’s new value reached $0.00003394.

Hence, if SHIB’s market cap remained unchanged, the token would theoretically need to burn 295 trillion tokens to achieve a 100% price increase.

According to the SHIB burn tracker, an average of 5 million tokens were burned in the last 24 hours alone.

Assuming this burn rate, it would take over 161K years to burn 295 trillion tokens and achieve a 100% price increase.

This highlights the need for SHIB’s deflationary model to be ramped up for holders to experience significant gains.

On the other hand, SHIB’s price has dropped by 16% in the last seven days, with sell pressure rising on exchanges. This could dampen SHIB’s price performance into the holiday season.