With gradual destruction of Shiba Inu’s supply, growth potential is rising
The supply of the largest Mem coin on the market is rapidly dwindling, with almost half of its offering exhausted. With an ever-dwindling supply, the Shiba Inu market should be healthy as there are fewer tokens 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 inception, the supply of Shiba Inu has been set at 1 quintal, which apparently became a problem soon after the bullish market phase ended. Massive selling volumes hit the cryptocurrency markets, making a rally on the Shiba Inu nearly impossible as traders were ready to suffocate any attempts to break out almost immediately.
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 increased demand, the decreased supply of ShiB should act positively on the token’s market momentum and potentially fuel future rallies. Unfortunately, burning up a large portion of the supply is not a panacea for a steady increase in the market value of an asset.
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.
