Introduction
We know the popularity your favourite crypto meme coins, Overview of Shiba Inu (SHIB) as a popular meme coin.Significance of circulating supply in cryptocurrency pricing.
Objective:-Analyze the effect of Shiba Inu’s circulating supply on its price behavior.
Shiba Inu Background
First Introduced in August 2020 by “Ryoshi.”
Marketed as an Ethereum-based competitor to Dogecoin.
Notable features include ShibaSwap, Shibarium (Layer-2 blockchain), and associated tokens (SHIB, LEASH, BONE).
Current Circulating Supply
Initial total supply:-1 quadrillion SHIB tokens.
Present circulating supply: About 589.25 trillion SHIB (as of June 2025).
Token burns:-
Major occurrence, like Vitalik Buterin burning 410 trillion tokens in 2021.
Continuous burn processes through Shibarium and community initiatives.
Comparison of current supply with maximum supply (589.55 trillion SHIB) and full dilution valuation.
Impact of Circulating Supply on Price
Basic supply and demand principles:
A large circulating supply diminishes individual token value, constraining price increases.
Contrast with limited supply assets such as Bitcoin (19.83 million) or Ethereum (120.59 million).
Effects of token burns and deflation:
Token burns lessen circulating supply, potentially enhancing scarcity and price.
Recent example:-15.4 million SHIB burned in 24 hours at a 556.93% burn rate.
Market cap considerations:
Current market cap (~$7.46 billion USD) face challenges in achieving high price goals (e.g., $0.01).
Notably, reaching a price of $0.01 requires an impractical market cap of $589 trillion.
Community and sentiment influences:
The “ShibArmy” propels demand through excitement and adoption.
Speculative trading and fear of missing out (FOMO) affect short-term price fluctuations.
Additional Factors and features Affecting SHIB Price
Adoption of Shibarium:- Increased transaction volume (1 billion transactions) enhances usage.
Market dynamics:-The volatility of meme coins and rivalry with other coins like Dogecoin or Dawgz AI.
External influences:- Potential ETF approvals, whale behaviors, and overall economic conditions.
Price Forecasts and Obstacles time period
Short-term predictions for 2025: Possible highs of $0.00003641–$0.00005308.
Long-term projections for 2030–2035: Expected stabilization around $0.000012–$0.0000124.
Challenges: The significant supply limits considerable price appreciation; substantial burns or increased adoption are essential.
Conclusion for above
Recap:- Shiba Inu’s ample circulating supply hinders price advancements, yet burns and ecosystem growth present possibilities.
Key insight: While community efforts forces and burns may foster modest increases, achieving high price targets like $0.01 is improbable without drastic supply changes or market developments.
Suggestion: Investors should keep an eye on burn rates, Shibarium usage, and market sentiment to make well-informed decisions.