Shiba Inu is currently experiencing a turbulent period, and its market performance reflects the broader challenges in the cryptocurrency space.
According to recent insights from Santiment, Shiba Inu has lagged behind other meme coins like Dogecoin in terms of returns. The data indicates that SHIB’s 30-day average trading returns are down slightly at -1.1%, while long-term returns have fallen significantly by -31.7%.
Per Santiment, this decline has positioned the token for potential gains once Bitcoin stabilizes and altcoins regain momentum.
Furthermore, the report highlighted that Shiba Inu’s retail traders have been showing signs of relief. Wallets holding less than 1 billion SHIB now account for a smaller share of the total supply.
This marks the lowest level since November 2022, suggesting that a significant portion of smaller holders has exited the market. As a result, the large wallets—holding over 1 billion SHIB—now dominate the supply. Santiment stressed that this metric suggests a substantial level of FUD in impacting the SHIB ecosystem.
Declining Social Activity and Sentiment for Shiba Inu
Moreover, Shiba Inu has seen a decline in social activity throughout 2024, with discussions about the meme coin reaching new lows since late July.
This dip in conversation reflects growing frustration among traders, especially as smaller retail participants have increasingly abandoned the asset.
However, the outlook for the token remains a topic of debate. Some crypto experts have suggested that SHIB could see future gains, especially in comparison to Dogecoin.
Notably, investor sentiment in meme coins like Dogecoin has been relatively more positive, but Shiba Inu is not completely out of the conversation for potential price surges.
Dogecoin, PEPE, and the Broader Landscape
While Shiba Inu has faced challenges, other memecoins like Dogecoin and PEPE have shown mixed results. Short-term traders in Dogecoin are seeing slight profits, though long-term holders are down significantly at -20.8%.
Moreover, retail traders have remained cautious, and there have been no significant signs of large-scale accumulation of DOGE since this year.
On the other hand, PEPE, which has attracted newer traders, has maintained a market cap increase of approximately 50% over the past five months, despite the broader market downturn.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
