Shiba Inu: New entrants to the rescue of the old?
- On-chain data showed that Shiba Inu’s new addresses increased.
- Ethereum whales continue to stick to their holdings despite SHIB’s underwhelming performance.
For a while, the number of new Shiba Inu [SHIB] addresses has been decreasing. But between 20 May and 26 May, the tides changed. According to Glassnode, the number of new addresses on the SHIB network reached 2,538 on 26 May— the highest it has been since February.
The entry of new participants or investors into the Shiba Inu [SHIB] ecosystem can potentially have an impact on the market dynamics. Typically, it serves as proof of increased demand for the token.
Is the plan to ride the wave till the end?
While new entrants may bring fresh capital, factors such as the project’s development progress, utility, adoption, and overall market conditions also have a role to play.
Although the Shiba Inu ecosystem may have made some progress with developments lately, the same cannot be said for long-term holders of the token. In fact, IntoTheBlock data showed that about 78% of SHIB holders were at a loss.
This occurrence could be linked to SHIB’s abysmal performance in the past year up to the last few months. At press time, CoinMarketCap showed that the token price decreased by 14.57% in the last 30 days.
However, the crypto market insight platform revealed 80% of the holders had large bags of tokens. On looking at information from WhaleStats, it was found that SHIB remained the most traded token by Ethereum [ETH] whales in the last 24 hours.
This implied that interest in the token by these cohorts has stayed significant. Hence, investors believe that the token could be a valuable asset to hold in the long term.
Similarly, SHIB remained part of the top five holdings by ETH whales. With over 496 billion tokens held, ETH, and the top two stablecoins in Tether [USDT], and Circle [USDC] were the only assets ranking above it. This represented 11.94% of the total supply held by these whales.
A case of clear despair
As per active addresses, Santiment revealed that SHIB had improved. At the time of writing, the seven-day active addresses had increased to 20,600.
Read Shiba Inu’s [SHIB] Price Prediction 2023-2024
Active addresses indicate the number of unique addresses involved with transacting an asset. Therefore, the hike infers a considerable boost in interaction within the token.
Despite the uptick, SHIB’s weighted sentiment hovered around the negative region. The weighted sentiment takes into account the unique social volume displaying the crypto community’s acumen with respect to a token.
At -0.619, the metric implied that the broader pessimistic perception toward SHIB had not been quenched.