The once-thriving Shiba Inu (SHIB) meme coin is grappling with significant shifts in its market dynamics as small wallet holdings drop sharply. In a recent report by market intelligence platform Santiment, it was revealed that the number of wallets holding small quantities of SHIB has plunged to its lowest level since November 2022. This trend is seen as a sign of waning interest among retail investors, contributing to the overall fear, uncertainty, and doubt (FUD) surrounding the cryptocurrency.
Small Wallet Holders Are Leaving SHIB
Wallets holding less than 1 billion SHIB, often considered small holdings, have seen a sharp decline. This shift could reflect a broader sentiment of distrust among smaller retail investors, who seem to be abandoning the digital asset amid a turbulent market. According to Santiment, this marks a significant downturn in SHIB’s distribution, raising concerns about the future of the coin’s retail engagement.
The last time Shiba Inu experienced such a drop was during the uncertain market conditions of late 2022. With SHIB now facing a similar fate, the meme coin’s future distribution could face challenges if retail participation continues to dwindle. This trend is a stark contrast to Dogecoin, SHIB’s biggest rival in the meme coin space, which appears to have maintained its small wallet base more effectively.
Decline in Social Engagement Mirrors Investor Sentiment
Adding to the concerns is a notable decrease in social media discussions about Shiba Inu. Since July, social interactions around SHIB have reached new lows, suggesting that the coin has lost its once-vibrant community buzz. Santiment attributes this decline to dissatisfaction among smaller retail traders, who are leaving the asset at a rapid pace.
The dwindling social engagement, coupled with the exodus of small holders, signals a growing disinterest in SHIB among its retail base. This could have far-reaching implications for its market position, particularly in an industry where community support and social buzz often drive price momentum.
SHIB – The Worst-Performing Meme Coin of 2024?
Santiment has gone as far as labeling Shiba Inu as the worst-performing Dogecoin competitor of 2024. Long-term trading returns have seen a drastic drop, plunging by -31.7%, while the 30-day average returns fell by a more modest -1.1%. This bleak performance paints a grim picture for SHIB in the short term, especially as the broader market struggles to stabilize.
Despite these challenges, SHIB’s fortunes could change. Santiment notes that if Bitcoin, the leading cryptocurrency, manages to regain its footing and altcoins start to thrive, SHIB could still see a resurgence. However, this turnaround depends largely on broader market conditions and investor sentiment shifting back in favor of altcoins.
While Shiba Inu’s recent performance has been disappointing, there are glimmers of hope for long-term investors. According to Investing Haven, a prominent crypto analyst, SHIB could be gearing up for a major rally in 2025. The meme coin is currently testing a crucial support level at $0.0000111, and analysts are eyeing a potential W-reversal pattern on its weekly chart.
Also Read: Dogecoin Down 20%, Shiba Inu Falls 31%, Pepe Surges 50% Amid Crypto Market Volatility
If SHIB holds steady at this level, a bullish reversal could be in the cards, with the potential for a significant rally by mid-2025. For investors willing to weather the storm, this may present an opportunity for future gains, despite the current downturn.
Shiba Inu’s sharp decline in small wallet holdings, combined with reduced social media activity and poor trading returns, paints a concerning picture for the meme coin. However, optimistic long-term predictions offer a glimmer of hope, with a potential rally in 2025 on the horizon. As the broader market stabilizes and retail interest in altcoins returns, SHIB could still have its moment of redemption in the evolving cryptocurrency landscape.
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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