Recently, a member of the Shiba Inu team provided important clarification on the topic of reducing the SHIB supply. The response was to a request from an X platform user, asking the Shiba Inu developers to take action on SHIB’s overwhelming supply.
According to Lucy, a key figure in the Shiba Inu community, the developers of Shiba Inu cannot alter its supply. This is due to the fact that Ryoshi, the mysterious creator of Shiba Inu, burned the keys, effectively removing control over the supply from anyone. Much like Bitcoin’s creator, Satoshi Nakamoto, Ryoshi vanished from social media in May 2022, leaving behind a decentralized system that no one can manipulate.
Lucy emphasized the current and only way to reduce the SHIB supply: “To reduce the supply, SHIB must be purchased and burned, which requires financial resources.” She further elaborated on an essential part of the overall strategy: “To significantly cut down the supply, we need millions (or even billions) of users! The plan is to build an epic ecosystem that attracts tons of people, with everyone using Shibarium on a daily basis. The more users we have, the more SHIB can be burned, increasing its value over time.”
The strategy, as explained by Lucy, revolves around expanding the community and allowing the system to work its magic, creating a self-sustaining model for SHIB reduction.
In line with this strategy, according to the latest hourly update from Shibburn X handle, a total of 3,632,401 SHIB tokens were burned in the last 24 hours. However, this represents a sharp 65.56% decrease in the burn rate. Meanwhile, the current circulating supply of Shiba Inu remains at a staggering 589,271,230,359,528 tokens. To provide perspective, Shiba Inu had a total supply of 1 quadrillion tokens at its inception.
Despite this, Shiba Inu has seen significant movement in terms of its holders’ net flow, as reported by the blockchain analytics platform IntoTheBlock. The SHIB token experienced a remarkable 1,387% increase in net inflows over the past seven days. Such a spike in net inflows can often be interpreted as an accumulation by whale holders (large-scale investors). On the other hand, a decrease in net inflows could suggest position reductions or token sales.
The net flow of whale holders offers critical insights into the shifts in whale positions. The recent rise in net inflows among large holders might indicate that whales are capitalizing on SHIB’s price consolidation under the 50-day Simple Moving Average (SMA) at $0.000014, accumulating more tokens at this lower price point.
Read more Whale Activity Surges in Shiba Inu Cryptocurrency: What Does It Mean for the Market
As of the time of writing, SHIB has risen by 0.68% over the last 24 hours, trading at $0.0000138. This slight increase indicates that despite fluctuations in the burn rate and the challenges of reducing supply, the community’s growing involvement and the actions of large holders are playing a pivotal role in maintaining SHIB’s momentum.
The future of SHIB’s supply and price will hinge on the success of the community’s efforts to expand and drive everyday use of Shibarium. If Lucy’s vision comes to fruition and millions of users flock to the ecosystem, SHIB’s deflationary model could lead to substantial value appreciation. However, this requires patience and a continued commitment from the community to invest in SHIB and participate in the token burn strategy.
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