Cryptocurrency

Expert Proves: Demand Sent Shiba Inu Up 46,000,000%, Not Vitalik Buterin Whopping SHIB Burn

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.

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

Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

Recent Posts

Michael Saylor Eyes $21 Billion Bitcoin Purchase. Here’s The Implication

Michael Saylor, the executive chairman of MicroStrategy and one of Bitcoin’s most vocal advocates, is…

15 minutes ago

Bitcoin Shorts Face $1.5 Billion Liquidation Risk. Here’s Why

Bitcoin’s relentless rally has put bearish traders in a precarious position, with $1.5 billion in…

36 minutes ago

XRP at a Critical Juncture: Key Levels That Will Define Its Next Move

XRP is currently trading at $2.2942, down 4.98% in the last 24 hours. This decline…

56 minutes ago

Coinbase Set to Launch Cardano (ADA) Futures

Coinbase, one of the world’s largest cryptocurrency exchanges, is making a significant move by launching…

1 hour ago

Ethereum (ETH) Price Analysis: Key Levels and Market Outlook

Ethereum (ETH) is currently trading at $1,894.88, reflecting a 2.21% decline from its previous close.…

1 hour ago

Michael Saylor Says Bitcoin (BTC) Golden Cross Is Here: Details

Michael Saylor, one of Bitcoin’s most influential advocates, has issued a bold statement on what…

1 hour ago