According to Shibburn, the SHIB value surge was primarily fueled by demand, not Vitalik Buterin’s burn of 410.2 trillion SHIB tokens.
Shibburn highlights that although Buterin’s burn was substantial, with the burnt tokens now valued at $3.1 billion, it did not directly impact 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
According to Shibburn, the surge in demand in May 2021 was the primary reason behind SHIB’s rally. This demand, along with the fact that Buterin owned half of the token’s supply, likely contributed to the price rally.
Before Buterin’s burn, SHIB had already surged by 29,151,160% from a low of $0.000000000119 on Jan. 1, 2021, to a high of $0.00003469 on May 11, 2021. Buterin’s burn happened after the rally, during a correction phase in May, causing SHIB’s price to drop to $0.00000621 in June 2021.
Despite a temporary setback, SHIB made a strong comeback, rallying 1,324% to reach an all-time high of $0.00008845 in October 2021.
Shibburn highlights that while Shiba Inu has surged over 46 million percent since 2020, it has only increased 5 times since May 6, 2021, suggesting that the asset’s rally occurred mainly before Buterin’s burn.
Now, the project continues building, and one of the most recent highlights was the launch of its layer-two network called Shibarium. You can find out everything about it in our most recent video: