Shiba Inu Supply Reduced 41% Amid Price Decline

Shiba Inu, initially launched as a meme-based cryptocurrency in August 2020, has evolved into a broader ecosystem with increasing utility. The project has implemented significant token burns to reduce its total supply, which was originally 1 quadrillion tokens. According to data from Shibburn, the supply has been reduced to approximately 589.25 trillion tokens, meaning about 410.75 trillion tokens, or roughly 41% of the original supply, have been permanently removed from circulation through multiple burn initiatives. One notable burn occurred when Ethereum co-founder Vitalik Buterin donated and destroyed a large portion of SHIB tokens.

Despite these reductions, some members of the Shiba Inu community remain concerned about the token’s high supply, believing it limits SHIB’s price potential compared to other cryptocurrencies with lower supplies. In response, some community members advocate for additional burns, proposing a long-term target of bringing the supply down to 10 trillion tokens. Supporters of this strategy argue that a lower supply would improve market valuation metrics and potentially aid in price recovery. Over the past year, the token has seen a 40.86% decline in price, including a 13.39% drop in the last 30 days and a 2.97% dip in the past week. These losses reflect both internal supply concerns and the general market downturn. Notably, Ethereum has also experienced a decline of 21.3% year-to-date and 25.98% over the past year, indicating broader market challenges.

Analysts have attempted to estimate SHIB’s price if its total supply were reduced to 10 trillion. Under the assumption that the current market capitalization of $7.19 billion remains unchanged, the price per SHIB token could rise to approximately $0.000719. This would represent an increase of around 5,793% from the current price of $0.00001216. Achieving this supply level, however, would require the destruction of nearly 580 trillion tokens, an ambitious goal. Some believe that such a large-scale reduction could be possible through expanded utility of Shibarium, Shiba Inu’s layer-2 blockchain, which incorporates burn mechanisms tied to transaction fees, as well as through continued community-led campaigns.

Various forecasting platforms have included $0.0007 in their future price projections for SHIB. Telegaon estimates the token could reach this price point by 2030, with a potential maximum of $0.000712. Similarly, Changelly anticipates that SHIB might achieve this level by December 2034, having revised its earlier 2030 projection in response to recent price trends. Although reducing SHIB’s supply to 10 trillion remains highly unlikely in the near term, the discussion emphasizes the significance of tokenomics in influencing market behavior. Supply dynamics continue to be a focal point in shaping both investor sentiment and long-term price forecasts for Shiba Inu.