Shiba Inu (SHIB) has emerged as a prominent meme coin, often dubbed the 'Dogecoin killer' by its enthusiastic supporters. As its popularity grows, more investors and enthusiasts are curious about its tokenomics, particularly the total and circulating supply of SHIB coins.
What Is Shiba Inu (SHIB)?
Shiba Inu was launched in August 2020 by an anonymous development team. Unlike cryptocurrencies that operate on their own blockchains, SHIB is an ERC-20 token built on the Ethereum network. This allows it to leverage Ethereum's robust infrastructure, including access to decentralized finance (DeFi) platforms and other services, giving it a utility edge over many other meme coins.
The Shiba Inu ecosystem has expanded significantly since its inception. It now includes ShibaSwap, a decentralized exchange, non-fungible tokens (NFTs), and a play-to-earn game called Shiba Eternity. Supported by a dedicated community, SHIB has climbed the ranks to become one of the top cryptocurrencies by market capitalization.
Total Supply of Shiba Inu Coins
At its launch in 2020, the total supply of Shiba Inu was set at 1 quadrillion tokens. This massive amount, equivalent to one thousand trillion SHIB, was the largest token supply ever seen in the cryptocurrency space at that time. The enormity of this supply garnered significant media attention and played a role in the project's initial visibility.
It's important to understand that a large token supply doesn't inherently diminish a project's value or utility. Some observers initially viewed the quadrillion-token supply as a marketing gimmick. For newcomers to cryptocurrency, the low per-token price might have made SHIB appear more affordable than other digital assets, though token price alone doesn't reflect the true value of a project.
Current Circulating Supply of Shiba Inu
The circulating supply of SHIB has decreased substantially from its original amount. Currently, there are approximately 589 trillion SHIB tokens in circulation. This reduction occurred primarily in 2021 when Ethereum co-founder Vitalik Buterin received a large portion of the initial supply and subsequently burned 410 trillion tokens by sending them to a dead wallet. Buterin announced he would donate the remaining tokens to charitable causes.
The SHIB community has actively participated in token burning initiatives to make the cryptocurrency deflationary. Token burning involves permanently removing tokens from circulation, increasing scarcity over time. The community democratically decides on burning events, with voting power proportional to the amount of SHIB held by participants.
While the development team likely holds significant tokens, their identities remain unknown, making it unclear who exactly influences these community decisions. The burning mechanism aims to reduce the total supply, potentially increasing the value of remaining tokens through scarcity.
Of the current 589 trillion tokens, a portion remains in locked or burned wallets, further contributing to the token's scarcity.
Why Token Supply Matters for Investors
Understanding token supply is crucial for evaluating any cryptocurrency investment. The value of a digital asset is determined by its market capitalization, which is calculated by multiplying the token price by the circulating supply.
This principle applies to traditional stocks as well. For example, while Apple Inc. shares trade at a lower price per share than Berkshire Hathaway, Apple's market capitalization is significantly higher due to its greater number of outstanding shares.
When investors purchase SHIB tokens, they're essentially buying a percentage of the total supply rather than just individual tokens. A cryptocurrency with a lower token price might actually have a higher market capitalization and thus represent greater value than a coin with a higher per-token price but smaller supply.
Investors should focus on market capitalization rather than token price when evaluating projects, as market cap reflects the true value of the cryptocurrency network.
Future Outlook for Shiba Inu Supply
The future supply of SHIB will significantly influence its price trajectory. While specific burning events aren't typically announced in advance, they occur regularly and can be tracked through various online tools and community channels.
The development team will likely continue using the burning mechanism strategically in response to market conditions. Other factors that may influence SHIB's price and supply dynamics include community initiatives, staking opportunities, and any strategic partnerships formed by the Shiba Inu ecosystem.
👉 Track real-time token burning statistics
Comparing Shiba Inu's Supply to Other Cryptocurrencies
Shiba Inu's token supply stands out significantly when compared to other major cryptocurrencies:
Shiba Inu vs. Dogecoin (DOGE): Dogecoin has a circulating supply of approximately 141 billion coins. Unlike SHIB's active burning mechanism, Dogecoin has an unlimited supply with annual inflation built into its protocol.
Shiba Inu vs. Bitcoin (BTC): Bitcoin has a hard-capped supply of 21 million coins, with over 19 million already mined. Bitcoin's supply mechanism includes programmed halving events every four years that reduce mining rewards, making it progressively scarcer. This predetermined deflationary model differs from SHIB's community-driven burning approach.
Bitcoin will continue its halving events until approximately 2140 when the last bitcoin is mined. This predictable scarcity model has been a fundamental factor in Bitcoin's value proposition.
Frequently Asked Questions
How many Shiba Inu coins were originally created?
The initial total supply of Shiba Inu was 1 quadrillion tokens (1,000,000,000,000,000 SHIB) when it launched in 2020.
What is the current circulating supply of SHIB?
Approximately 589 trillion SHIB tokens are currently in circulation after significant burning events removed over 410 trillion tokens from the initial supply.
Why does token supply matter in cryptocurrency investing?
Token supply affects market capitalization, which represents the true value of a cryptocurrency network. Investors should evaluate market cap rather than token price when assessing projects.
How does SHIB's supply compare to Bitcoin?
Bitcoin has a fixed supply of 21 million coins, while SHIB originally had 1 quadrillion tokens. Bitcoin's supply is programmatically limited through halving events, while SHIB relies on community-driven burning mechanisms.
Can the SHIB supply decrease further?
Yes, the SHIB community continues to burn tokens regularly, making the cryptocurrency deflationary over time. The development team may also initiate additional burning events in response to market conditions.
Where can I track SHIB burning events?
Several online platforms and social media accounts provide regular updates on SHIB burning activities. Community channels and cryptocurrency tracking websites offer real-time information on supply changes.
Understanding Shiba Inu's token supply dynamics provides valuable insight for investors considering this popular cryptocurrency. While the initial supply was exceptionally large, strategic burning mechanisms have made SHIB increasingly scarce over time, potentially influencing its future value proposition in the competitive cryptocurrency market.