Shiba Inu (SHIB), one of the market’s largest memecoins, is still far from its glory days. The token is trading more than 90% below the all-time highs it reached in October 2021.
Even with gains of about 5% during April’s price action, the rebound looks limited in the broader context—especially as investors weigh the long-term forces that can either lift a token or keep it pinned.
No Fast Scarcity, Bigger DownsideOne of the biggest issues is the coin’s supply. SHIB’s total supply is roughly 589.5 trillion tokens, with nearly all of that supply already in circulation. While a major portion was removed from circulation in 2021, the remaining amount is still so large that it doesn’t change the overall picture.
The report emphasizes that the supply scale makes it difficult to tighten Shiba Inu in a way that would noticeably impact price.
At the same time, the report highlights a key downside that works in the opposite direction: there is no comparable built-in mechanism that rapidly reduces supply when demand weakens.
Near-Zero Warning For Shiba InuIn that scenario, the report goes as far as saying Shiba Inu could drift toward near-zero levels by the end of 2026, not as a sudden collapse, but as the result of prolonged weakness.
Beyond supply mechanics, the report also points to SHIB’s ownership and distribution. It argues that the token’s supply is concentrated among a small number of wallets. According to the report, the top 10 wallets hold more than 60% of SHIB’s total supply.
If a few major wallets choose to sell, the added supply can weigh on price. At the same time, the report notes that many of the remaining Shiba Inu holders are small retail investors, who typically have limited capital to absorb large sell orders.
Featured image created with OpenArt, chart from TradingView.com
