- Shiba Inu has undergone a substantial 41% supply deflation since May 2021, impacting its circulation.
- The projected trading price, if Shiba Inu attains its highest market cap, is $0.000424.
- Shiba Inu’s smart contract allows potential supply increases, presenting a significant factor in performance.
In the realm of cryptocurrency investing, a critical aspect is the examination of tokenomics, where supply inflation or deflation can significantly impact the performance of digital assets. This analysis studies the intriguing tokenomics of Shiba Inu (SHIB), shedding light on its unique structure and exploring potential economic implications.
Shiba Inu, like any other cryptocurrency, is subject to the ebb and flow of supply and demand dynamics. Finbold recently conducted a thorough examination of SHIB’s tokenomics, utilizing public market data from prominent indexes to uncover insights into the effects of increased supply inflation. One key aspect of this exploration is the calculation of the hypothetical trading price of SHIB.
On May 11, 2021, SHIB achieved an all-time high market cap of $249.833 billion, as reported by TradingView’s CRYPTOCAP index. At that time, the circulating supply was a staggering 1 quadrillion SHIB, resulting in a price as high as $0.000249833. However, on October 28, 2021, SHIB reached its peak price of $0.00008185, with a circulating supply of around 662 trillion.
As of the latest data on November 24, 2023, Shiba Inu’s circulating supply stands at 589.346 trillion SHIB. Notably, this reflects a supply deflation of 410.66 trillion SHIB (41%) since May 2021 and 72.66 trillion SHIB (11%) since October 2021.
The economic implications of this deflation are profound. If Shiba Inu meets its speculative demands and attains its highest market cap, the projected trading price would be $0.000424 per token. This represents a significant increase of $0.000175 (70%) from the 2021 all-time high and an astounding 5,200% surge from the current price of $0.000008.
However, it is crucial to approach these projections with caution. The forecast hinges on the assumption of a demand level comparable to that of 2021, and there are no guarantees that such demand will materialize. Moreover, the observed all-time high may have been influenced by various factors, potentially making it an anomaly in price.
Furthermore, the Shiba Inu smart contract allows for a supply increase at any moment, and in the event of such an occurrence, supply inflation could significantly impact SHIB’s performance. Investors and enthusiasts alike must carefully consider these factors when assessing Shiba Inu’s potential future trajectory in the ever-evolving cryptocurrency landscape.
In a recent tweet, Shibburn highlighted their role as the first $SHIB project, contradicting the belief that the token’s journey began with a SushiSwap fork. This revelation sparked a candid discussion, leading to a deeper exploration of the intriguing history of $SHIB.