Shiba Inu [SHIB], the meme-inspired cryptocurrency that gained fame for its playful branding and community-driven hype, has recently experienced a substantial decline in value. Over the past six months, SHIB has lost more than 55% of its value, now trading at $0.00001348. This drop is part of a broader market downturn that has seen SHIB fall 3% in the past month alone.
Despite this recent slump, SHIB is up more than 30% year-to-date. However, recent analysis by blockchain analytics firm Santiment reveals that the cryptocurrency’s ecosystem is facing significant challenges. The firm highlights that investors are grappling with a high level of Fear, Uncertainty, and Doubt (FUD), and notes that wallets holding over 1 billion SHIB tokens control the majority of the supply.
Santiment’s analysis indicates that the percentage of SHIB’s supply held by wallets with less than 1 billion tokens is now at its lowest level since November 2022. This suggests that smaller retail investors are increasingly sidelined, while larger holders retain a dominant share of the supply.
The firm also observes a significant decline in social discussions surrounding SHIB since late July, with sentiment showing a slight negative bias. Smaller retail traders have been exiting the asset in large numbers, contributing to the overall negative sentiment surrounding SHIB.
In contrast, Dogecoin [DOGE] has shown different dynamics. Short-term traders have realized slight profits, although long-term traders are experiencing losses near their lowest levels of the past year. Retail wallets holding 1 million DOGE or less now hold about 11.8% of the cryptocurrency’s supply, a figure that has remained stable since the beginning of the year. These traders are currently accumulating more DOGE.
Meanwhile, PEPE, another meme-inspired cryptocurrency, has demonstrated a different trend. Retail traders have shown increasing confidence, with wallets holding 1 million PEPE or more gaining their share of the available supply. Traders appear to be using each dip as an opportunity to accumulate more PEPE.
Santiment suggests that Shiba Inu’s current setup could be beneficial in the long run. The firm notes that while the market conditions are currently challenging, SHIB could potentially perform well once Bitcoin stabilizes and altcoins experience a resurgence. The current situation, where retail traders are exiting and larger holders are accumulating, could set the stage for a future rebound.
In summary, while Shiba Inu faces a challenging period with declining value and negative sentiment, there is potential for recovery if broader market conditions improve. Investors should remain cautious but optimistic, keeping an eye on market developments and the performance of major cryptocurrencies like Bitcoin, which could influence the trajectory of SHIB and other altcoins.
September 2024, Cryptoniteuae