A Shiba Inu burn tracker has stated that the astronomical rise of SHIB in 2021 was due to demand from users and not from Vitalik Buterin’s token burn.
In 2021, Vitalik Buterin burned 410.2 trillion SHIB tokens, worth $3.1 billion at the time. The surge in the price of SHIB that happened around that time is often linked to this massive token burn. However, Shibburn (@shibburn), a popular burn tracker for SHIB, has come forward to set things straight on how much this burn influenced the price of SHIB.
Read Also: Estimating The Timeline for Shiba Inu to Attain $0.01 with Current SHIB Burn Rate
In a post on X, Shibburn points out that SHIB’s historic rise was due to the demand from users. Platform clarified that Vitalik didn’t spend $1.7 billion when he burned the SHIB tokens in May 2021.
The Shiba Inu burn tracker stressed that the tokens were given to Vitalik when SHIB was deployed. The act of transferring most of those tokens some months later did not have a direct positive impact on the token’s price.
Just to clarify something on Vitalik Buterin's burn. He did not spend $1.7B in $SHIB to burn on May 2021 for it to have any effect on price then. That was given to him when the token was deployed. Transferring 90% of what was given to him from one wallet to another (burn address)… pic.twitter.com/QCpRAnlIwz
— Shibburn (@shibburn) September 6, 2023
Shibburn pointed out that the price surge came because of high demand which can be attributed to more and more investors discovering and investing in SHIB. However, the platform concluded that Vitalik’s action could also have an impact on the token price since he was holding relatively half of the SHIB supply.
The Rally Before the Burn
To support his claims, he provided a chart from coinmarketcap.com which highlighted something interesting.
SHIB had already increased from $0.00000154 on May 7, 2021, to $0.00003469 on May 11 of the same year. The chart clearly shows that SHIB’s rally was firmly in progress before Vitalik’s token burn.
Read Also: 5 Trillion Monthly Burns Target: Shiba Inu Team Reveals How Shibarium Will Boost SHIB Burns
The token’s price was already on its way down when the burn happened on May 16. Shibburn shows that the massive SHIB burn did very little to stop the decline and the price dropped to $0.00000621 in June of that year.
However, it wasn’t long before SHIB made its big comeback and in October 2021, SHIB reached an all-time high of $0.00008845. This happened well after the token burn.
He also pointed out that SHIB has grown 46 million percent since 2020 but has only grown 5x since May 6, 2021, showing that the burn had very little effect on the SHIB price trajectory.
This is also strongly supported by Shiba Inu lead developer Shytoshi Kusama, who recently said burns are not enough, urging the community to also push for adoption.
Follow us on Twitter, Facebook, Telegram, and Google News
