Shiba Inu All-Time High Could Have Halved to $0.00004225 if ETH Founder Didn’t Burn 410T SHIB

Shiba Inu burn analytical resource Shibburn asserts that the all-time high (ATH) for SHIB could have halved to $0.00004225 if the historic burn from Ethereum founder Buterin never occurred.

The team behind Shibburn disclosed this in their latest analysis of Vitalik Buterin’s monumental burn exercise. A post from their official X account suggests that the token allotment did ultimately affect SHIB’s price movements in 2021.

Notably, the recent disclosure aimed to clarify an earlier statement on the impact of the event to Shiba Inu’s 2021 bull run. “What if Vitalik Buterin had sold the 50% of the $SHIB supply instead, or if the 50% had never been sent to him?” Shibburn asked in the tweet.

What if Vitalik Buterin had sold the 50% of the $SHIB supply instead, or if the 50% had never been sent to him? The price could have reached $0.00004225 when Market Cap was at its All-Time High instead of $0.00008845. If it had the same demand. #SupplyAndDemand pic.twitter.com/eCGTeotCFX

— Shibburn (@shibburn) September 11, 2023

Recall that Shiba Inu’s anonymous founders allotted half of the token’s circulating supply to Buterin. Buterin donated 10% of the assets he received to charity and sent the remaining 90% to the burn address, effectively removing them from circulation.

Interestingly, this monumental burn from Buterin coincided with Shiba Inu’s impressive rally in 2021. However, SHIB had already kick-started the rally before the burn transaction occurred.

The 90% burned by Buterin amounted to 410 trillion tokens worth $7 billion at the time of the transaction. These tokens accounted for 41% of Shiba Inu’s circulating supply.

Shibburn believes allotting the tokens to Buterin already triggered a positive price reaction. This price reaction, compounded by a growing demand for Shiba Inu, catalyzed SHIB’s 2021 rally even before the burn transaction occurred.

Shiba Inu ATH Would Have Been $0.00004425

SHIB witnessed a meteoric rise that saw it appreciate at an astronomical rate. Interestingly, Vitalik Buterin’s burn transaction occurred after this meteoric rise. Nonetheless, after the burn, Shiba Inu soared once more. The asset eventually hit the ATH of $0.00008845 in October 2021.

At the $0.00008845 price, Shiba Inu reached a peak market cap of $42.25 billion in 2021. With this massive valuation, the asset secured a spot among the top 3 crypto assets.

According to Shibburn, if Buterin had not received 50% of the supply or if he had dumped the tokens on the market, Shiba Inu’s all-time high would have been $0.00004225. This value is half of the current ATH and would have been the price at which SHIB hit its peak market cap.

The disclosure from Shibburn underscores the impact of burns, investor sentiment, and demand on an asset’s price. The insights are especially useful for market participants, as they anticipate massive burns on Shibarium.