Shiba Inu (SHIB) coin has emerged as a significant competitor in the meme coin market, often touted as the ‘Dogecoin killer’ by its advocates.
As the popularity of this cryptocurrency expands, many investors and enthusiasts are increasingly curious about the tokenomics and circulating supply of Shiba Inu coins.
Understanding Shiba Inu Coin (SHIB)
Launched in August 2020 by unknown developers, Shiba Inu operates as an ERC-20 token on the Ethereum blockchain. This strategic choice grants SHIB access to decentralized finance (DeFi) services, enhancing its utility compared to other meme coins with limited features.
Shiba Inu’s vast token supply, a key element of its appeal, sets it apart from others in this category. The ecosystem has expanded to include projects like ShibaSwap (a decentralized exchange), NFTs, and the engaging play-to-earn game Shiba Eternity.
With a growing and dedicated community, Shiba Inu has skyrocketed in popularity, now ranking among the top 20 cryptocurrencies by market capitalization.
Total Supply of Shiba Inu Coins
Upon its launch, the total supply of Shiba Inu coins hit an astonishing 1 quadrillion tokens. This unmatched token supply drew global attention and headlines in the crypto space.
It’s important to clarify that a large supply does not inherently devalue a cryptocurrency. Some observers perceive the substantial supply as merely a gimmick. For new cryptocurrency enthusiasts, the seemingly lower price of SHIB tokens may make them appear more affordable compared to other digital currencies.
The nuanced relationship between token price and the actual project value is crucial for understanding cryptocurrency investments. Now, let’s explore the current circulating supply of Shiba Inu coins.
Current Circulating Supply of Shiba Inu
Shiba Inu has experienced a significant reduction in its circulating supply, which currently stands at approximately 589 trillion tokens. Notably, Ethereum co-founder Vitalik Buterin transferred 410 trillion tokens to a dead wallet in 2021, effectively removing them from circulation and stating his intent to donate the remainder to charity.
The Shiba Inu community has actively been involved in burning large quantities of tokens to create a deflationary mechanism, enhancing the scarcity of SHIB over time. These burn activities are conducted democratically, with token holders possessing greater voting influence proportionate to their holdings.
This approach aims to diminish the total supply of Shiba Inu tokens, ideally increasing their value for investors. For example, if an individual owns 10 tokens in a project with a total supply of 100, they own 10% of the overall supply. Should the community burn 50 tokens, that same investor would then hold 20% of the remaining supply, potentially resulting in a value increase.
Of the remaining 589 trillion SHIB tokens, some are locked or burned, contributing further to the scarcity.
Why Supply Matters to Investors
The overall value of a cryptocurrency can be calculated by multiplying the number of coins by their price.
Market cap = price x supply.
This concept is akin to stock valuation for traditional companies.
For example, while one share of a major tech company is valued at $170, another prestigious company may list shares at $685,000 each.
However, this doesn’t imply that the latter company is more valuable overall. In reality, the first company’s market cap far exceeds that of the second.
Thus, it’s essential for investors to consider both token price and total supply when evaluating market cap and determining a project’s true value.
Future of Shiba Inu Supply
The future supply of SHIB will significantly influence the cryptocurrency’s price trajectory.
While the timing of token burns generally remains undisclosed, they occur regularly and can be monitored via community channels.
The extent of future burns is uncertain and likely responsive to market conditions, including community-led initiatives and developments in staking and partnerships.
Comparing Shiba Inu’s Supply to Other Cryptocurrencies
Shiba Inu’s supply is notably high, but this metric alone does not determine its value. It is essential to consider market capitalization and token price together.
Shiba Inu vs. Dogecoin (DOGE): Dogecoin boasts a circulating supply of around 141 billion tokens. Unlike SHIB, which employs an active burn process, Dogecoin has an unlimited supply with annual inflation.
Shiba Inu vs. Bitcoin (BTC): Bitcoin, on the other hand, has a capped supply of 21 million coins, with over 19 million currently in circulation. Bitcoin’s halving mechanism reduces the number of newly minted coins every four years, establishing it as a scarce asset.
Bitcoin’s predictable deflationary structure is a critical factor in its valuation and appeal.
FAQs
How many Shiba Inu coins were initially released?
Initially, 1 quadrillion Shiba Inu coins were released upon the launch of SHIB in August 2020.
How many Shiba Inu coins are left?
After the burn from Vitalik Buterin and ongoing community-led initiatives, the circulating supply of Shiba Inu is currently about 589 trillion SHIB.
How many Shiba Inu coins are burned daily?
The daily burn rate of SHIB tokens varies based on community actions. Recently, over two billion SHIB tokens were burned in the past week.
How many Shiba Inu coins are mined per day?
SHIB cannot be mined. The entire supply was minted at launch, and no new tokens will be created.
Who owns the most Shiba Inu?
The largest holders of Shiba Inu include decentralized exchanges and community initiative wallets. Vitalik Buterin remains a significant holder, while the identities of the other major holders are unknown.
