Is Shiba Inu [SHIB] still a good bet for a trader?

 55 Interactions,  4 Today

Shiba Inu, like most altcoins in the market, experienced a price increase in April-May of this year. The second-largest meme coin went on to hit its $0.000032 ATH on 11 May. Since then, however, its price has drastically fallen. In fact, at press time, SHIB’s value stood at just $0.0000064.

Now, the altcoin’s developers recently launched their own DEX – ShibaSwap. Within 24 hours of launching, the protocol’s TVL managed to cross the $1 billion mark. Needless to say, the SHIB Army soon started celebrating quite vocally on social media. Curiously, however, the same community now believes that SHIB will become even more mainstream over the coming weeks.

Consider this: when ShibaSwap went live, the price of SHIB rose slightly. Unfortunately, it was all for nought. The price of the meme coin has dropped by 25% in the last 30 days. Furthermore, at the time of publication, the majority of the token’s on-chain metrics appeared to paint a very bleak picture.

Supply problems

At the time of writing, the total supply of tokens on all exchanges was 62.9 trillion. In fact, this metric has remained relatively stable around its early June levels. This essentially means that market participants have been selling their tokens and returning them to exchanges.

See also  Traders should look into Shiba Inu, Elon Musk and BabyDoge for the following reasons.

Only when there is a significant outflow of exchange funds can the price of SHIB be expected to rise. As a result, the chances of a price trend reversal appear to be very slim at the moment.

 

Source: Santiment

Where are the volumes?

Shiba Inu trading and social volumes reached new highs in the first half of May of this year. However, their press time levels appeared to be far below the aforementioned highs. At the time, SHIB routinely received 9000 social media mentions per day. However, it has recently been oscillating around the 1000 mark.

Similarly, on May 10, the token’s trading volume was valued at over 19 billion. On the contrary, at the time of writing, it was stuck between 100 and 400 million.

 

Source: Santiment

Enough addresses for a revival?

The number of active addresses too, for that matter, has been on the downside lately. SHIB boasted of over 100k addresses in May, while the same at press time merely managed to cross the 12k level. Another major source of concern is the significant decrease in the number of daily unique addresses. If this metric does not change its course in the coming weeks, it will almost certainly stymie the token’s slim chances of rallying.

See also  Bitcoin reserves at Coinbase have fallen to their lowest level since December 2017.

To make matters worse, ShibaSwap’s TVL has plummeted over the last ten days. At the time of writing, the figure was only $412 million.

It appears that there isn’t much that can be done right now to resurrect the fate of a meme coin.

Subscribe to our newsletter

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *