Shiba Inu (SHIB) is currently navigating a turbulent phase, reflecting the broader challenges within the cryptocurrency market. According to recent data from Santiment, the popular meme coin has underperformed compared to its peers like Dogecoin, with Shiba Inu’s 30-day average trading returns dipping to -1.1%. The long-term outlook appears even more bleak, with returns down by a steep -31.7%.
Shiba Inu’s Market Struggles – Is There Hope For A Rebound?
Santiment’s analysis paints a challenging picture for Shiba Inu, but there may still be hope. The decline in SHIB’s value could position it for a potential comeback once Bitcoin stabilizes and the altcoin market regains momentum. Historically, meme coins like SHIB have seen rapid growth in tandem with Bitcoin’s rallies. However, current market conditions remain sluggish, leaving SHIB holders anxiously waiting for a turn in fortunes.
A key factor impacting Shiba Inu’s current situation is the shift in its retail trader base. Wallets holding less than 1 billion SHIB now account for a smaller portion of the overall supply, marking the lowest level since November 2022. This suggests that a significant number of smaller investors have exited the market, likely discouraged by SHIB’s recent price action. Large holders, or “whales,” now dominate the supply, controlling over 1 billion SHIB tokens each.
This whale dominance hints at a significant level of fear, uncertainty, and doubt (FUD) within the ecosystem, as smaller retail participants abandon the asset.
Declining Social Activity and Sentiment
Adding to the coin’s woes is a drop in social activity surrounding Shiba Inu. Conversations about the coin on social platforms have hit new lows since late July 2024, reflecting growing frustration among its investor base. Retail traders, particularly those holding smaller amounts of SHIB, seem to have lost confidence, further contributing to the meme coin’s struggles.
Despite this downturn, SHIB is not entirely out of the race. Some crypto experts argue that Shiba Inu could still see future gains, particularly if Bitcoin recovers. While Dogecoin remains the dominant meme coin, SHIB is still in the conversation for potential price surges, especially if market conditions shift.
Dogecoin, PEPE, and the Meme Coin Landscape
While Shiba Inu has faced challenges, other meme coins like Dogecoin and PEPE have seen mixed performances. Dogecoin has shown slight short-term profits for traders, though its long-term holders are still down significantly, with losses around -20.8%. Retail traders remain cautious, and there has been no significant accumulation of Dogecoin by large investors.
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Meanwhile, PEPE, a relatively new player in the meme coin world, has managed to maintain market interest. Despite the broader cryptocurrency downturn, PEPE’s market cap has surged by approximately 50% over the past five months, driven by newer traders and speculative investors.
While Shiba Inu’s short-term prospects appear uncertain, the token still holds potential, especially if market conditions improve. As retail traders exit and whales take control, SHIB could be poised for a rebound, particularly if Bitcoin’s price stabilizes. However, declining social sentiment and investor frustration remain significant hurdles. For now, Shiba Inu’s future remains in limbo, with crypto enthusiasts closely watching for signs of a comeback.
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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