Shiba Inu, the meme cryptocurrency that took the crypto world by storm, could have witnessed a significant drop in its all-time high (ATH) if it weren’t for a pivotal move by Ethereum founder Vitalik Buterin. Analytical resource Shibburn has recently shed light on how Buterin’s historic burn of SHIB tokens played a crucial role in shaping the asset’s price trajectory.
In their latest analysis of Vitalik Buterin’s monumental burn exercise, the Shibburn team unveiled a compelling insight. According to their findings, the ATH for SHIB could have been nearly halved, landing at a mere $0.00004225, had Buterin not taken action.
The backstory to this revelation lies in the allocation of Shiba Inu tokens to Vitalik Buterin. In a bold move, Shiba Inu’s anonymous founders assigned 50% of the token’s circulating supply to Buterin. In response, Buterin didn’t just hold onto these tokens; he made a groundbreaking decision. He donated 10% of the assets he received to charity and then sent the remaining 90% to a burn address, effectively removing them from circulation.
Crucially, this monumental burn coincided with Shiba Inu’s impressive rally in 2021. However, what’s worth noting is that SHIB had already kick-started its remarkable ascent before the burn transaction took place.
The 90% of SHIB tokens burned by Buterin amounted to a staggering 410 trillion tokens, worth a mind-boggling $7 billion at the time of the transaction. These tokens constituted a significant 41% of Shiba Inu’s circulating supply.
Shibburn’s analysis suggests that merely allotting these tokens to Buterin had already triggered a positive price reaction. This reaction, combined with the growing demand for Shiba Inu, catalyzed SHIB’s extraordinary rally even before the burn transaction unfolded.
So, what would Shiba Inu’s ATH have been if Buterin hadn’t received the tokens or if he had chosen to sell them on the market instead of burning them? Shibburn’s answer is a compelling one: $0.00004225. This hypothetical value is nearly half of the actual ATH that SHIB achieved, and it would have represented the price at which Shiba Inu hit its peak market capitalization.
Shiba Inu’s meteoric rise in 2021 catapulted it into the upper echelons of the cryptocurrency market, culminating in an ATH of $0.00008845 in October 2021. At this peak, Shiba Inu’s market capitalization reached a staggering $42.25 billion, securing its place among the top 3 crypto assets.
This revelation from Shibburn underscores the profound impact of token burns, investor sentiment, and demand on an asset’s price trajectory. It serves as a valuable lesson for market participants, especially as they look ahead to the potential effects of substantial burns within the Shiba Inu ecosystem on Shibarium.
In the ever-evolving world of cryptocurrencies, the story of Shiba Inu and Vitalik Buterin’s burn remains a fascinating case study of how one individual’s actions can reshape the destiny of a digital asset.