With gradual destruction of Shiba Inu’s supply, growth potential is rising
The supply of the biggest meme coin on the market is decreasing rapidly, and almost half of its offering is gone. With the continuously decreasing supply, Shiba Inu should become healthier on the market as fewer tokens are available for sale.
Previously, U.Today reported how the burn rate of the biggest meme coin on the market has been rapidly rising, breaking a multi-month record. Such a rapid spike was a sign of returning activity on the network. In case of the continuation of the trend, we will most likely see the increase in the burning pace, which will make 50% of SHIB’s supply obsolete.
Since Genesis, Shiba Inu’s supply has been set at 1 quintillion, which obviously became a problem immediately after the bull market phase was over. The enormous selling volume hit cryptocurrency markets, making a reversal rally on Shiba Inu almost impossible as traders were ready to suffocate almost any attempt to break through immediately after.
With the significant reduction of the supply, a recovery will finally become a possibility, especially if the price of SHIB does not move in accordance with the supply change as occurred with Ethereum.
In case of a demand spike, the decreased supply of Shib should act positively on the token’s market momentum and potentially become the fuel for a future rally. Unfortunately, the burning of a large part of the supply is not a panacea for the stable growth of an asset’s market value.
More fundamental factors like network usage, a robust ecosystem and useful solutions are more relevant while analyzing the growth potential of an asset on the market. Unfortunately, Shiba Inu currently lacks those fundamental things which explain its depressing performance on the market.