Vitalik Buterin could have fueled Shiba Inu price rally by burning $1.7 billion in SHIB
- Vitalik Buterin burned 90% of SHIB sent to his wallet by creator Ryoshi in 2021.
- Shiba Inu burn statistics tracker explains how the Ethereum creator could have fueled a rally through a timely SHIB burn.
- SHIB burn rate declines nearly 40% overnight, while meme coin’s price is in an upward trend.
Back in 2021, Vitalik Buterin, the co-founder of Ethereum, received nearly 505 trillion SHIB from Ryoshi, the creator of the Shiba Inu project. Buterin donated 10% of the tokens to a Covid-19 relief charity and sent 90% to a dead-end wallet address.
Shiba Inu’s burn statistics tracker shared insights into how Buterin’s actions could have fueled a rally in SHIB price in May 2021.
Also read: Bitcoin options traders are selling bear spreads without fear, eyeing BTC rally to $30,000
Vitalik Buterin’s SHIB token transfer could have fueled a rally
Shibburn.com, Shiba Inu’s burn tracker informed the SHIB holder community in a recent tweet that Buterin’s SHIB transfer in May 2021 was likely ill-timed. The Ethereum creator moved 90% of the SHIB tokens received from Ryoshi to a dead-end wallet, when the price of the tokens was nearly $1.7 billion.
Burning 90% of the SHIB tokens did not appear to have a significant impact on the meme coin’s price at the time.
It seems like many have taken what I said about VB in this post out of context. Those tokens weren't initially burned, but they had already set the price from the very beginning and demand cause price to increase more due to half of the supply that was set aside. That's why… https://t.co/aTyO7BHeva
— Shibburn (@shibburn) September 7, 2023
However, the team behind the burn tracker argues that a similar move, nearly two weeks before the transfer, would have amounted to $6.7 billion worth of SHIB. Burning or removing this value of SHIB tokens from circulation likely positively influenced the meme coin’s price via supply-demand dynamics.
Buterin added a note to his transfer made to the charity and said that he would prefer creators of crypto projects donate to charities, instead of offering him “the locus of power.”
Shiba Inu price is in an upward trajectory this week
Shiba Inu price climbed to $0.00000779 early on Friday. The meme coin is recovering from its August 17 intraday low of $0.00000725. The Shiba-Inu-themed meme coin needs to erase its losses from the past three weeks to make a comeback to $0.00000993, the price at which SHIB developers announced the launch of Layer 2 chain Shibarium.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
