September 29, 2023

A Shiba Inu burn tracker has said that the astronomical rise of SHIB in 2021 was as a consequence of demand from customers and never from Vitalik Buterin’s token burn.

In 2021, Vitalik Buterin burned 410.2 trillion SHIB tokens, value $3.1 billion on the time. The surge within the value of SHIB that occurred round that point is usually linked to this huge token burn. Nonetheless, Shibburn (@shibburn), a well-liked burn tracker for SHIB, has come ahead to set issues straight on how a lot this burn influenced the worth of SHIB.

Learn Additionally: Estimating The Timeline for Shiba Inu to Attain $0.01 with Present SHIB Burn Charge

In a post on X, Shibburn factors out that SHIB’s historic rise was because of the demand from customers. Platform clarified that Vitalik didn’t spend $1.7 billion when he burned the SHIB tokens in Might 2021.

The Shiba Inu burn tracker pressured that the tokens got to Vitalik when SHIB was deployed. The act of transferring most of these tokens some months later didn’t have a direct optimistic impression on the token’s value.

Shibburn identified that the worth surge got here due to excessive demand which may be attributed to increasingly more traders discovering and investing in SHIB. Nonetheless, the platform concluded that Vitalik’s motion might additionally have an effect on the token value since he was holding comparatively half of the SHIB provide.

The Rally Earlier than the Burn

To help his claims, he supplied a chart from which highlighted one thing fascinating.

SHIB had already elevated from $0.00000154 on Might 7, 2021, to $0.00003469 on Might 11 of the identical yr. The chart clearly reveals that SHIB’s rally was firmly in progress earlier than Vitalik’s token burn.

Learn Additionally: 5 Trillion Month-to-month Burns Goal: Shiba Inu Group Reveals How Shibarium Will Increase SHIB Burns

The token’s value was already on its method down when the burn occurred on Might 16. Shibburn reveals that the large SHIB burn did little or no to cease the decline and the worth dropped to $0.00000621 in June of that yr.

Nonetheless, it wasn’t lengthy earlier than SHIB made its large comeback and in October 2021, SHIB reached an all-time excessive of $0.00008845. This occurred nicely after the token burn.

He additionally identified that SHIB has grown 46 million p.c since 2020 however has solely grown 5x since Might 6, 2021, displaying that the burn had little or no impact on the SHIB value trajectory.

That is additionally strongly supported by Shiba Inu lead developer Shytoshi Kusama, who lately mentioned burns are usually not sufficient, urging the group to additionally push for adoption.

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