Could Shiba Inu have reached $0.00008 without Buterin's burn?

▲ Ethereum (ETH) co-founder Vitalik Buterin, Shiba Inu (SHIB)/ChatGPT generated image ©

Vitalik Buterin's large-scale burn is once again drawing attention as a decisive factor that enabled Shiba Inu to reach its all-time high in 2021.

According to the cryptocurrency media Watcher.Guru on May 3 (local time), Shiba Inu (SHIB) surged to $0.00008616 during the 2021 bull market, marking a representative memecoin rally. An analysis suggests that the token burn by Ethereum co-founder Vitalik Buterin acted as a key catalyst in this process.

Shiba Inu launched in August 2020 with a total supply of 10 quadrillion tokens. Half of this was sent to Buterin, who burned 90% of it and donated the rest to charity. This massive supply reduction is credited with significantly increasing the potential for price appreciation.

The prevailing analysis suggests that without Buterin's burn, the enormous supply would likely have suppressed price increases. Furthermore, the connection of a symbolic figure like Buterin to the project also boosted investor confidence, acting as another upward driver.

Consequently, the media's judgment is that it is highly unlikely Shiba Inu would have reached its high of $0.00008616 without Buterin's involvement and burn. The analysis suggests that not only supply and demand but also psychological factors played a role simultaneously.

Currently, Shiba Inu's circulating supply stands at approximately 589 trillion tokens. Given this supply structure, the prevailing view is that reaching $1 is virtually impossible, and developer Shytoshi Kusama has also stated that price increases are difficult to expect from burns alone. Ultimately, a significant increase requires substantial widespread adoption.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*