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The cryptocurrency market is going through a volatile period, and Shiba Inu is not immune to the storm. Despite a price drop and a lack of interest from small investors, the SHIB token retains a loyal community. A closer look at a paradox that intrigues crypto investors!
In brief
- Despite losses, the majority of Shiba Inu holders keep their tokens long-term.
- The future of this crypto notably depends on reducing its dependence on bitcoin’s price.
Shiba Inu: a crypto abandoned by the general public but kept by long-term holders
59% of the current holders of the crypto SHIB are “out of the money.” This means they bought their tokens at a higher price than the current value. 78% of them have held their SHIB token for over a year. This impressive figure reflects long-term confidence despite a difficult environment in the crypto market.
The transaction volume dropped by 2.61% to reach $133.6 million. Upstream, the number of new crypto investors remains marginal. It increased by only 2% over the last month. This indicates a waning public interest, particularly among retail investors.
Measured notably by the decline in Telegram subscribers, community engagement is also declining. This signals a short-term loss of interest!
But not everything is bleak! Indeed, institutional interest in the Shiba Inu crypto remains strong. Proof: the significant transaction volume reached $184.96 million over seven days. This shows that some crypto whales or high-net-worth players continue to bet on Shiba Inu.
Shiba Inu: a digital asset still strongly correlated with bitcoin price movements
According to data, Shiba Inu shows a correlation with bitcoin of 0.84. This simply means its movements closely follow those of the crypto market leader.
Analysis: If the BTC price rebounds, Shiba Inu could benefit from it.
To reverse the current trend, the SHIB token will need to prove that its ecosystem can develop independently.
To attract new investors and regain ground in the crypto scene, Shiba Inu will also have to:
- revitalize its community;
- strengthen its visibility;
- offer concrete innovations.
The situation of Shiba Inu reflects, in any case, the contradictions of the current crypto market. Its future will depend on its ability to rekindle the interest of small holders and to break free from the overall bearish market.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
