Shiba Inu, a cryptocurrency known for its memes, has reached an important milestone: over 410.74 trillion tokens have been burned, which accounts for over 41% of the original supply. In this article, we will explore how this affects the market and what potential SHIB holds for the future.
Burning of Shiba Inu Tokens
Shiba Inu launched with 1 quadrillion tokens, which was part of the joke about a coin with such a vast supply. However, as interest grew, the team began to burn tokens. The largest single burn occurred in 2021 when Ethereum co-founder Vitalik Buterin burned 410 trillion SHIB – 90% of the tokens he was given, which were sent to him by the team without asking.
Nuances of Reduced Supply
Currently, the total supply of SHIB stands at around 589 trillion tokens. Despite 41% being burned, hundreds of trillions remain in circulation. This makes it difficult for SHIB to significantly rise in price without a massive increase in demand. Moreover, burning does not automatically create that demand.
SHIB's Prospects and Utility Development
For SHIB to take a more significant place in the market, it requires utility. In this regard, the team has launched Shibarium, a Layer 2 network, and the Shib Alpha Layer, a system that helps developers build blockchain applications more quickly. A new gaming partnership with TokenPlayAI aims to integrate SHIB into Web3 gaming. These steps indicate that SHIB wants to move beyond being just a meme coin, but the market hasn't fully bought into this yet.
The burning of tokens is an impressive sign of long-term commitment and makes SHIB scarcer. However, for the coin to truly break out, it needs more than supply reduction — it needs real use, real demand, and real investor confidence in its future.
