$SHIB $SHIB 794 trillion SHIB prevents Dogecoin from removing a zero - What is hindering SHIB's rise?
Dogecoin (SHIB), as one of the most watched meme coins in the crypto space, continues to face resistance in its pursuit of removing another zero from its price. Despite strong community engagement and frequent ecosystem updates, SHIB's price remains significantly below the threshold of $0.00001. The core of this stagnation lies in an astonishing number: 794.41 trillion SHIB tokens are still in circulation.
The Challenge of Oversupply
One of the main factors hindering SHIB's price growth is its massive circulating supply. Approximately 794.41 trillion tokens still exist, leading to extreme dilution of the token. For SHIB's price to rise significantly — even just by a decimal point — its market cap would need to reach astronomical figures unless the supply is drastically reduced.
This makes the token burn mechanism a key part of the community's strategy. Although billions of tokens have been burned over time, these efforts still seem trivial compared to the enormous scale of total supply. Without large-scale burns or demand that can outpace supply growth, price movements will remain sluggish.
Tokenomics: A Double-Edged Sword
SHIB's initial appeal lies in its accessibility — anyone can own millions of tokens with a small investment. However, this design has become a double-edged sword. While the high supply allows for wide distribution, it also makes achieving meaningful price increases more difficult.
Even with strong use cases — such as Shibarium (a Layer 2 blockchain), SHIB: the Metaverse, and increased payment acceptance — the sheer number of tokens still dilutes the impact of adoption and development news on the token's price.
Investor Sentiment and Market Trends
The broader sentiment in the crypto market also plays a role. During bull markets, meme coins like SHIB often experience explosive gains as speculative investors rush in. However, during less fervent periods, the reality of SHIB's tokenomics becomes more pronounced.
