$SHIB destruction, is it the truth or just hype?
Here is the information I have discovered, along with insights into the potential impact on SHIB prices.
The initial supply of SHIB was 999 trillion, and to date, over 410 trillion tokens have been destroyed.
This massive action has gained strong momentum recently, thanks to the launch of Shib's second-layer network, with the destruction rate soaring by 6220%.
Shib is not only a scaling solution but also automates the destruction of tokens through transaction fees, ensuring the circulating supply steadily decreases over time.
For example, in January 2024 alone, 9.9 billion tokens were destroyed, and while this number is quite substantial, it is still lower than the record of 36 billion destroyed in December 2023.
The destruction efforts have removed a significant amount of SHIB from circulation, but so far, the impact on price has been relatively mild.
In my view, token destruction is just one piece of the puzzle. While reducing supply can create scarcity, to have a lasting impact, it must be complemented by an increase in demand.
Currently, SHIB's trading price is approximately $0.00002354. Although the destruction efforts help stabilize the price, they have not triggered a significant increase.
If SHIB wants to reach the much-discussed highs of $0.01 or even $1, I believe the community must go beyond destruction efforts and focus on more aspects.
Expanding the ecosystem, creating real-world use cases, and driving adoption are all key factors; without these, even the most aggressive destruction efforts may only have a temporary impact on price.
After delving into the data and observing trends, I believe token destruction is a good start, but it is by no means a cure-all for SHIB.
The destruction mechanism achieved through Shib shows certain potential, especially when the network is widely adopted.
However, the long-term value of SHIB will depend on the team's ability to build use cases and attract new investors.
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