Ethereum News Today: Bybit's SHIB Hoard: A Glimpse Into Meme Coin's Deflationary Future

Bybit’s latest proof of reserves snapshot has revealed that the exchange holds approximately 2.94 trillion Shiba Inu (SHIB) tokens, making it one of the largest single custodians of the meme coin. The 25th audit in Bybit’s ongoing transparency initiative highlighted the dominance of SHIB in the exchange’s token reserves, significantly outpacing other major assets in terms of volume [1]. This figure is consistent with broader market trends, as SHIB continues to maintain a strong presence on major exchanges and in user portfolios, despite its volatile price.

The Bybit audit also showed increased holdings in Bitcoin and Ethereum, with BTC rising 5.61% to 58,954 coins and ETH up 6.59% to 604,131 coins over the last three weeks. In contrast, USDT holdings declined by 4.75%, with over 242 million tokens leaving the platform [1]. These figures suggest a mixed trend in crypto inflows and outflows, with stablecoins like USDT seeing a dip while Bitcoin and Ethereum experienced modest but notable growth.

Beyond Bybit’s reserves, SHIB’s broader distribution reveals a deflationary trajectory. Approximately 41% of SHIB’s total supply is locked in a burn address, representing over $5 billion in tokens removed from circulation. This burn activity has been a key component of SHIB’s long-term strategy, aiming to reduce supply and potentially increase scarcity over time [1]. The remaining active supply is largely held by major exchanges like Coinbase, Binance, Upbit, and Crypto.com, each of which also holds trillions of SHIB tokens.

The integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has further expanded SHIB’s utility by enabling cross-chain token burns that are anchored to Ethereum. This development allows SHIB holders to transfer tokens across multiple blockchains while ensuring that the original Ethereum-based supply is reduced through automatic burns. The move enhances SHIB’s cross-chain functionality and reinforces its Ethereum-based foundation [4]. However, despite this technological advancement, the token’s daily burn rate has dropped significantly, with only 69,953 tokens burned in the past 24 hours—a 99.76% decline [4].

Analysts have highlighted the long-term investment potential of SHIB, particularly in scenarios where the token experiences substantial price appreciation. According to one model, a consistent $200 monthly investment in SHIB could accumulate to nearly $1 million by 2050, assuming the token’s price reaches $0.000217. While this forecast is speculative and contingent on future market conditions, it underscores the high-conviction nature of SHIB as a long-term speculative asset [3].

As of the latest data, SHIB trades at approximately $0.000013, down over 11% in the past month. The token has also experienced significant liquidation activity, with over $300,000 in position closures recorded recently [3]. These figures highlight the inherent volatility and risk associated with SHIB, despite its growing institutional presence and deflationary measures.

Source:

[1] Bybit Reveals How Much Shiba Inu (SHIB) It Owns Talk ... (https://u.today/bybit-reveals-how-much-shiba-inu-shib-it-owns-talk-about-trillions)

[2] Bybit and FXStreet TradFi Report: Gold Poised for Breakout (https://coinpaper.com/10485/bybit-and-fx-street-trad-fi-report-gold-poised-for-breakout)

[3] Here's How a $200 Monthly Shiba Inu (SHIB) Investment ... (https://captainaltcoin.com/heres-how-a-200-monthly-shiba-inu-shib-investment-could-turn-into-1m-by-2050/)

[4] Shiba Inu's Chainlink Integration Unlocks Cross-Chain Burns (https://www.cointribune.com/en/shiba-inu-chainlink-integration-unlocks-cross-chain-burns/)