Shibburn, a Shiba Inu burn tracker, stated that the astronomical rise of SHIB in 2021 was driven by user demand, not Vitalik Buterin’s token burn, as it is commonly believed.
Shiba Coin and Token Burn
In 2021, Vitalik Buterin burned 410.2 trillion SHIB tokens, worth $3.1 billion at that time. The price increase of SHIB was often associated with this significant token burn. However, Shibburn, a popular burn tracker for SHIB, stepped up to clarify how much this burn actually affected the price of SHIB.
In a post on X, Shibburn points out that the historical rise of SHIB is due to user demand. The platform stated that Vitalik did not spend $1.7 billion when he burned SHIB tokens in May 2021.
The Shiba Inu burn tracker emphasized that when SHIB tokens were distributed, they were given to Vitalik. It explained that the transfer of these tokens several months later did not have a direct positive impact on the token price.
Shibburn highlighted that the price increase was driven by high demand, which could be attributed to 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 holds about half of the SHIB supply.
History of Shiba Inu
To support its claims, Shibburn provided an interesting graph from Coinmarketcap. SHIB had risen from $0.00000154 on May 7, 2021, to $0.00003469 on May 11 of the same year. The graph clearly showed that SHIB’s rally continued strongly before Vitalik’s token burn.
The price of the token had already started to decline by May 16 when the burn took place. Shibburn shows that the significant SHIB burn did little to stop the decline, as the price dropped to $0.00000621 in June of that year.
However, it didn’t take long for SHIB to make a big comeback, reaching its all-time high of $0.00008845 in October 2021. This happened long after the token burn.
Furthermore, it noted that SHIB had grown by 46 million percent since 2020, but only 5 times since May 6, 2021, indicating that the burn had little impact on SHIB’s price movement.
This situation is strongly supported by Shytoshi Kusama, the lead developer of Shiba Inu, who recently stated that burn transactions were not enough and urged the community to push for adoption.
Shib bullrun will definitely be inside next 6 months. All them zeros will disappear