As a seasoned cryptocurrency investor with years of experience under my belt, I must say that the Shiba Inu token (SHIB) is a fascinating case study. With an unprecedented supply of over 589 trillion tokens and an active burning mechanism, SHIB stands out among its peers.
The Shiba Inu digital currency, commonly known as SHIB, is frequently seen as a strong competitor for the title of “King of Meme Coins.” It’s often called the “Dogecoin Challenger” by its advocates.
With the increasing popularity of the coin, there’s a growing curiosity among people about the token distribution of this project, leading them to ponder the number of Shiba Inu coins currently circulating.
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Understanding Shiba Inu coin (SHIB)
Shiba Inu was developed in August 2020 by anonymous creators. Unlike other tokens that operate independently, Shiba Inu (SHIB) is a token of the ER-C20 variety residing on the Ethereum blockchain. This connection grants it access to Decentralized Finance (DeFi) and associated services, placing it at an advantage compared to meme coins with fewer practical applications.
The unique combination of this service, along with a substantial amount of tokens (which we’ll delve into later), has been instrumental in setting Shiba Inu apart from others.
Currently, our ecosystem encompasses ventures such as ShibaSwap, a peer-to-peer trading platform, non-fungible tokens, and the interactive game called Shiba Eternity where players can earn rewards.
Due to its committed user base, the coin has gained significant recognition, now ranking among the top 20 cryptocurrencies in terms of market capitalization.
Total supply of Shiba Inu coins
At its debut in 2020, the Shiba Inu’s total supply amounted to an astonishing 1,000 trillion SHIB tokens, which is equivalent to one quadrillion. This made it the cryptocurrency with the largest token supply globally. Consequently, the extensive circulating supply of Shiba Inu generated buzz in news headlines and contributed significantly to the project’s global recognition.
It’s important to understand that just because there’s a lot of a certain project’s supply doesn’t automatically make its value or usefulness less significant, as some in the field consider this excess supply as merely a marketing ploy. For those new to cryptocurrencies and unfamiliar with token economics, it might appear that Shiba Inu (SHIB) tokens are relatively inexpensive compared to other crypto tokens, making them seem more accessible.
Absolutely, it’s important to distinguish the value of an individual crypto token from the value of the entire crypto project. We’ll delve into the topic of understanding cryptocurrency supply in greater depth later, but for now, let’s explore how many Shiba Inu coins are currently in circulation.
Current circulating supply of Shiba Inu
The Shiba Inu (SHIB) cryptocurrency has not been kept constant in terms of its supply, with the current figure standing at approximately 589 trillion SHIB. Back in 2021, Ethereum co-creator Vitalik Buterin transferred around 410 trillion tokens to a non-functioning digital wallet, essentially eliminating or ‘burning’ those tokens. He also announced his intention to contribute the remaining amount to charitable causes.
collectively, Shiba Inu (SHIB) enthusiasts have also eliminated a significant chunk of the original supply to make SHIB scarcer over time due to its deflationary nature. Following the spirit of cryptocurrencies, these eliminations are carried out in a democratic manner, with individuals who hold more SHIB tokens wielding greater influence when it comes to deciding when these burn events occur.
As a researcher, I’m uncertain about the identities of those leading the development team, who might also hold significant shares. Furthermore, it remains unclear who holds the majority of votes within our community.
This strategy aims to decrease the overall number of Shiba Inu coins available for circulation, thereby making them less common and theoretically increasing their value. The concept revolves around the proportion of tokens held by each investor. For instance, if an investor possesses 10 coins in a project where the total supply is 100 coins, they control 10% of the entire supply.
If the community burns 50 tokens and leaves just 50 in the total supply, that same investor now owns 20% of the total supply instead of 10%, and this may translate into a value increase for that investor.
A significant amount of the remaining 589 trillion tokens is kept in wallets that are either locked or permanently removed from circulation. This contributes to an even greater rarity in the number of available tokens.
Why supply matters to investors
The value of a cryptocurrency is the number of coins multiplied by the price of the coins.
Market cap = price x supply.
This is true for regular companies and their stocks as well.
For example, Apple Inc. stock is worth $170 per share, while Berkshire Hathaway stock is worth $685,000 per share.
So is Warren Buffet’s Berkshire Hathaway company worth more than Apple Inc.?
No.
Apple’s market capitalization is approximately three times larger than that of Berkshire Hathaway, amounting to about $3.45 trillion compared to Berkshire Hathaway’s $984 billion.
Apple holds a larger number of outstanding shares compared to Berkshire Hathaway. However, the quantity of these shares doesn’t influence the price or worth of the companies; instead, it serves as a conventional method of splitting up stocks available on the market.
Similarly, when someone buys SHIB tokens, they are buying a percentage of the overall supply.
In other words, a project might offer tokens at a lower cost compared to Shiba Inu, yet still hold greater value because it boasts a larger total market capitalization.
Instead of focusing on the number of shares or cryptocurrency tokens they possess, investors are more interested in the worth these items carry.
To put it simply, when estimating a project’s worth, investors should consider the token price in conjunction with the total number of tokens in circulation, which collectively determines the market capitalization. It’s essential to understand that the market cap, not the token price alone, represents the true value of the project.
Future of Shiba Inu supply
The future of the SHIB supply will play a major role in the price of the project.
Burns (in the context of cryptocurrency) aren’t usually foreseen, but they occur frequently. You can monitor them online using resources such as the Shibburn tool available on x.com.
1-Hour Shiba Inu Report:
— Shibburn (@shibburn) October 3, 2024
The exact number of SHIB tokens that could be destroyed in the future isn’t specified, but the project team may choose to implement a token burning mechanism when facing challenges with the price. Additionally, factors like community projects, staking actions, and strategic partnerships forged by Shiba Inu will also significantly impact its price.
Comparing Shiba Inu’s supply to other cryptocurrencies
As we now know, the Shiba Inu supply is unusually high.
Additionally, it’s important to understand that just the supply of a cryptocurrency doesn’t solely determine its value; instead, factors such as token price, market capitalization, and possibly other aspects should be taken into account when evaluating its worth.
Compare Shiba Inu and Dogecoin (DOGE): While Shiba Inu has an active mechanism to reduce its supply by burning coins, Dogecoin’s supply is not capped and continues to grow, with around 141 billion DOGE in circulation at the moment. Each year, there is an increase in the number of Dogecoins due to inflation, unlike Shiba Inu.
Comparison between Shiba Inu and Bitcoin (BTC): While Bitcoin has a fixed supply of 21 million coins, with approximately 19 million already in circulation, Shiba Inu does not have such restrictions. A distinctive feature of Bitcoin is its halving process, where the number of new Bitcoins produced each year decreases by half every four years, making it more rare and potentially deflationary. Unlike Shiba Inu, this halving mechanism in Bitcoin is automated and pre-set.
In simple terms, Bitcoin reduces the number of coins it produces every four years and stops creating new ones entirely by the year 2140. This built-in deflationary system is a significant factor contributing to Bitcoin’s value.
FAQs
How many Shiba Inu coins were initially released?
How many Shiba Inu coins are left?
How many Shiba Inu coins are burned daily?
How many Shiba Inu coins are mined per day?
Different from Bitcoin, Shiba Inu coins are not mineable. Instead, the total number of coins were minted and distributed at its launch, with no additional coins being produced in the future.
Who owns the most Shiba Inu?
At present, significant quantities of Shiba Inu coins are held by Decentralized Exchanges (DEXs), personal wallets associated with community projects, and notably, Vitalik Buterin. However, the identities of the other holders remain undisclosed.
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2024-10-04 06:09