Crypto Expert: Demand Trumps Burns in Shiba Inu’s Soaring Success
- Shiba Inu’s 2021 price surge was driven by user demand, not Vitalik Buterin’s token burn.
- Shibburn analysis shows the price rise started before the burn, and the burn had a limited impact.
- Shytoshi Kusama urges the SHIB community to prioritize adoption alongside burns.
Contrary to popular perception, it appears that Vitalik Buterin’s burn of 410.2 trillion SHIB tokens in May 2021 did not single-handedly ignite SHIB’s rally. Shibburn, a prominent Shiba Inu tracker, emphasizes that the token’s historic surge can be attributed to the increasing number of investors discovering and investing in SHIB.
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
While Vitalik’s action did involve a substantial portion of the SHIB supply, it had a limited immediate impact on the token’s price. To support this argument, Shibburn presented a compelling chart from CoinMarketCap, highlighting that SHIB’s price had already begun its ascent from $0.00000154 on May 7, 2021, to $0.00003469 on May 11, even before the burn. Furthermore, the burn did little to halt the subsequent decline, with the price dropping to $0.00000621 in June.
However, SHIB’s comeback was undeniable, reaching an all-time high of $0.00008845 in October 2021, well after the token burn. This data suggests that the demand from users was the primary driving force behind SHIB’s staggering success.
Notably, Shytoshi Kusama, the lead developer of Shiba Inu, echoed this sentiment, emphasizing that burns alone are insufficient. Kusama has urged the SHIB community to prioritize adoption efforts alongside token burns, underlining the importance of a multifaceted approach to ensure SHIB’s long-term viability and growth.
In conclusion, it is evident that the SHIB community should focus on fostering adoption and expanding its user base to sustain and build upon the token’s success, as demonstrated by the minimal impact of the SHIB burn on its price trajectory in 2021.