Shiba Inu's Large Supply Raises Concerns About Price Recovery

A recent report has shed light on several structural factors that have contributed to Shiba Inu's (SHIB) current performance and may continue to influence its trajectory. One major concern is the token's large supply, which totals roughly 589.5 trillion tokens with nearly all of it in circulation.

The report notes that even if a significant portion of this supply were removed daily for an extended period, hundreds of trillions would remain, making it difficult to achieve meaningful scarcity-driven price increases. In practical terms, this means that supply-driven scarcity is unlikely to occur quickly enough to have a major upward impact on the price.

On the other hand, there is no built-in mechanism that rapidly reduces supply when demand weakens. This creates a one-way risk for SHIB's price, making it vulnerable to continued downward pressure as investor attention fades and capital rotates towards other cryptocurrencies.