Here Is Cardano Price If Team Burns Half of ADA Supply

As some Cardano enthusiasts continue to call for token burns, we explored what could happen to ADA’s price if the team were to burn 50% of its total supply.

Token burning has become a widely used strategy for increasing the value and scarcity of digital assets. This process involves removing a portion of the token supply by sending it to a dead wallet, potentially driving prices higher over time.

Projects like Shiba Inu have relied on this strategy as a means to enhance the value of the SHIB token. Notably, SHIB embarked on a significant rally a few months after Ethereum co-founder Vitalik Buterin burned 41% of its 1 quadrillion supply. The incident demonstrated how impactful burns are in enhancing the value of a token.

In the meantime, Cardano does not support burns nor have a designated burn address. Some community members have proposed burning a portion of the supply, particularly those held within the ecosystem’s treasury.

Demand for Cardano Burns

Last year, prominent figure Big Pey proposed that the community could vote to burn around 1.5 billion ADA in the treasury. Interestingly, some users even advocated for more burns in an attempt to drive the ADA’s price higher.

In light of this, The Crypto Basic estimated ADA’s potential price if 50% of its total supply were sent to an inaccessible wallet. This projection assumes that ADA’s overall market valuation remains unchanged—a purely hypothetical scenario—while its supply is reduced by half.

For context, ADA has a supply of 45 billion tokens, with 35.83 billion currently in circulation. Accordingly, reducing the total supply by 50% would see it drop to 22.5 billion. As of press time, ADA was trading at $0.6713 with a market capitalization of $24.05 billion. This price reflects the current number of ADA tokens in circulation.

ADA Price If 50% of Supply Is Burned

In a hypothetical scenario where ADA’s market cap remains unchanged but 50% of its total supply is burned — dropping to 22.5 billion tokens — one would expect the resulting price per ADA to be $1.06.

Similarly, if 50% of the circulating supply (currently 35.83 billion ADA) were burned, reducing it to 17.91 billion tokens, ADA’s price would be $1.34, assuming the market valuation stays constant.

Both the $1.06 and $1.34 targets are still below ADA’s previous ATH of $3.10, registered on September 2, 2021. Cardano briefly crossed the $1 target in August during a broader market rally. However, it is currently trading below that level, with one token priced at $0.6713.

Despite this, several analysts, including MMBTrader, believe that Cardano will reclaim $1 in the short term. Also, prominent chartist BullStar predicted ADA’s potential spike to $1.30.

Point to Note

However, burning a significant portion of tokens — in this case, 50% of ADA’s supply — would also remove the corresponding market value of those tokens. As a result, ADA’s price would technically remain unchanged unless demand increases while the supply decreases.

A notable example is Stellar (XLM), which burned 50% of its total supply in 2019 yet continues to underperform due to weak demand. This demonstrates that token burns alone do not guarantee price growth, but merely make future rallies more impactful if demand rises.

Furthermore, it is not entirely realistic for Cardano to burn half of its supply, as individual users hold most ADA tokens. Achieving such a large-scale burn would require holders to destroy their own assets, which is highly improbable.