Shiba Inu demand rises; will SHIB see the impact?
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Shiba Inu’s network growth and active addresses have surged substantially over the last several weeks. But SHIB’s price action still remained bearish.
Sentiment around SHIB remained negative, while social volume was high.
SHIB’s price was down by 3% in the last 24 hours.
Shiba Inu [SHIB] has had a tough time over the past month as its price continued to plummet. However, Santiment’s latest analysis pointed out some interesting metrics, suggesting higher network activity despite the price drop.
😺 #ShibaInu has seen a big rise in new daily addresses created, consistently over 2,500 per day in the past couple weeks. Despite the underwhelming price performance, our latest insight covers why there’s promise behind one of 2021’s favorite #memecoins. https://t.co/Lzrpd3o06v pic.twitter.com/8jOt0weIyE
— Santiment (@santimentfeed) July 6, 2023
As demand for the memecoin gained upward momentum, the possibility of a hike in its price in the coming days can’t be ruled out.
Shiba Inu’s demand is rising
Santiment, in a recent analysis, revealed that SHIB’s demand was on the rise. This was evident from the massive increase in its network growth. For starters, a hike in the metric meant that more new accounts were created to transfer the token in a given timeframe.
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Source: Santiment
Not only that, but the memecoin’s active addresses also followed a similar trend. This can either mean that the market was nearing the top, or it could also suggest the opposite. As demand for the token increases, we might witness a price uptick.
As per Santrends’ analysis on Santiment,
“On the flip side, the recent attention could breathe new life to a previously under-the-radar token. As suggested by our proprietary metrics, daily active addresses for SHIB were lackluster before this surge in interest, indicating a newfound demand for the token.”
SHIB investors are under pressure
Shiba Inu’s market capitalization has sunk severely, which has pushed the token down to the 19th spot on the top cryptos list. As per CoinMarketCap, SHIB’s price had dipped by 3% in just the last 24 hours.
At the time of writing, it was trading at $0.00000721 with a market cap of over $4.2 billion.
Negative sentiment around the memecoin was also dominant, as evident from its weighted sentiment. However, its social volume remained high, suggesting that it remained a topic of discussion.
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Source: Santiment
Will Shiba Inu recover soon?
SHIB’s supply on exchanges registered a slight decline while its supply outside of exchanges increased, reflecting its demand. The memecoin’s MVRV Ratio, after a sharp decline, showed signs of recovery, which was optimistic.
Nonetheless, as per CryptoQuant’s data, its net deposits on exchanges were high compared to the last seven days. This cou cause trouble, as it meant that Shiba Inu was under selling pressure at press time.
Source: Santiment
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