$SHIB $SHIB $BTC 794 trillion SHIB prevents Shiba Inu from removing a zero - What is hindering SHIB's rise?
Shiba Inu (SHIB), as one of the most watched meme coins in the cryptocurrency space, continues to face resistance in its pursuit of removing another zero from its price. Despite strong community engagement and frequent ecosystem updates, the price of SHIB remains significantly below the threshold of $0.00001. The core of this stagnation lies in an astonishing figure: 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, which results in extreme dilution for the token. For SHIB's price to rise significantly - even by just one decimal point - its market cap would need to reach astronomical numbers, unless the supply drastically decreases.
This makes the token burn mechanism a crucial part of the community's strategy. Although billions of tokens have been burned over time, these efforts still seem insignificant compared to the massive scale of total supply. Without large-scale burnings or demand that can outpace supply growth, price movements will remain sluggish.
Token Economics: A Double-Edged Sword
SHIB's initial appeal lay in its accessibility - anyone could own millions of tokens with a small investment. However, this design has become a double-edged sword. The high supply allows for widespread distribution but 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 continues to dilute the impact of adoption and development news on the token's price.
Investor Sentiment and Market Trends
The broader sentiment in the cryptocurrency market also plays a role. During bull markets, meme coins like SHIB often experience explosive gains as speculative investors flock in. However, during less frenzied periods, the reality of SHIB's token economics becomes more pronounced.
