Shiba Inu: Potential SHIB Price Impact Following a Major Burn Event Similar to Vitalik Buterin’s Move

The Shiba Inu (SHIB) community has long speculated on the potential price effects of significant token burns, especially those mirroring the historic burn executed by Ethereum co-founder Vitalik Buterin. This analysis explores the hypothetical scenario where another large-scale SHIB burn occurs, examining its possible implications on market dynamics, investor sentiment, and price trajectory. Given SHIB’s deflationary tokenomics, such an event could substantially reduce circulating supply, potentially triggering increased scarcity-driven demand. We assess historical precedents, current market conditions, and expert projections to evaluate how SHIB’s valuation might respond to a Buterin-scale burn in 2025’s crypto landscape.

How Did Shiba Inu Rally So High In 2021?

One of the most significant catalysts for SHIB’s incredible rally in 2021 was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s total supply upon launch. Buterin decided to burn 90% of the tokens he received. About 410 trillion SHIB tokens were sent to the dead wallet.

At the time, there was a lot of demand for Shiba Inu (SHIB). The high demand and the sudden drop in supply led to a massive price rally.

What’s The Asset’s Price If Another Buterin-Like Burn Takes Place?

There are about 589 trillion Shiba Inu (SHIB) tokens in circulation at the moment. If 410 trillion tokens are burned, the project will have about 179 trillion left in circulation. Let’s assume SHIB’s market cap remains at its current level ($7.47 billion). In such a scenario, the price of each SHIB token will hit $0.0000417 (market cap divided by number of tokens). SHIB’s price will rally by 228.61% if it hits the $0.0000417 target. While the rally is commendable, it is nowhere close to SHIB’s 2021 performance.

If there is significant demand, the supply dip could lead to an even higher price level. If Shiba Inu’s (SHIB) market cap also increases, the price of each token will also go higher.