Shiba Inu (SHIB), the meme cryptocurrency that once commanded significant attention, is now navigating turbulent waters. Recent data from Santiment paints a sobering picture of SHIB’s performance, highlighting a marked decline in market metrics compared to its meme coin counterparts, like Dogecoin (DOGE).
Declining Returns And Retail Exodus
According to Santiment, Shiba Inu has experienced a drop in its 30-day average trading returns by 1.1%, with long-term returns plummeting by a substantial 31.7%. This downturn has sparked speculation that SHIB could rebound if Bitcoin stabilizes and the altcoin market picks up steam. However, current indicators paint a grim picture.
One key trend is the exodus of retail traders. Wallets holding less than 1 billion SHIB tokens now account for a smaller portion of the total supply, marking the lowest level since November 2022. This shift suggests that many smaller investors are exiting the market amid disappointing performance.
Conversely, larger wallets holding over 1 billion SHIB now dominate the supply. This concentration of holdings among fewer, larger players signals increased fear, uncertainty, and doubt (FUD) within the Shiba Inu ecosystem. The departure of smaller investors could signal a loss of confidence in SHIB’s future.
Declining Social Engagement
The decline in Shiba Inu’s social media activity further compounds its challenges. Conversations about SHIB have hit their lowest point since July, reflecting growing dissatisfaction among traders. The decreased online discussion aligns with the exit of smaller retail traders and suggests a waning interest in the token.
In contrast to Shiba Inu, Dogecoin and other meme coins have displayed mixed performance. While short-term traders in Dogecoin have seen some profits, long-term holders are still grappling with losses, averaging a 20.8% decline. Retail interest in DOGE remains relatively stable, but there are no clear signs of significant accumulation among retail traders this year.
Meanwhile, PEPE, another meme coin, has outperformed many of its peers. The token has seen its market cap surge by 50% over the past five months, attracting a new wave of traders despite the challenging market conditions. This success stands in stark contrast to Shiba Inu’s recent struggles, highlighting a shift in investor enthusiasm.
Looking Ahead – Can Shiba Inu Rebound?
Despite its current difficulties, the long-term outlook for Shiba Inu remains a topic of debate. The departure of smaller retail traders and the dominance of larger holders suggest a shift in investor sentiment. However, some analysts, like Lola, maintain a cautious optimism about SHIB’s potential for recovery. If Bitcoin stabilizes and the altcoin market rebounds, SHIB might find new momentum.
Also Read: Dogecoin, Shiba Inu, And PEPE Surge Over $2 Billion After Viral Trump Comment
The token’s historical association with meme coin price rallies and its strong community base offer a glimmer of hope for future gains. However, given the current market conditions and the shift away from retail enthusiasm, SHIB’s path forward remains uncertain.
As the crypto landscape continues to evolve, the coming months will be crucial in determining Shiba Inu’s trajectory and whether it can regain its former glory or face further decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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