As an analyst with over a decade of experience in the crypto market, I find myself constantly intrigued by the ebb and flow of various digital assets. The current state of Shiba Inu (SHIB) presents a compelling case study, riddled with both challenges and opportunities.


TL;DR

    The number of small Shiba Inu (SHIB) holders has significantly decreased, reflecting high levels of Fear, Uncertainty, and Doubt (FUD).
    Despite the current bearish sentiment, factors such as a shift to self-custody and an increase in SHIB’s burn rate could potentially drive a future price uptrend.

Small Players Leave the Ecosystem

In the last month, the meme cryptocurrency Shiba Inu (SHIB) has been experiencing a decline, causing its price to drop by approximately 5.5% and currently hovering around $0.00001328. Consequently, this slide has had a detrimental impact on investors holding this asset.

Shiba Inu FUD Reaches a ‘Tremendous’ Level as This SHIB Indicator Plummets to a 22-Month Low: Details

According to the crypto analytics platform Santiment, the average trading returns over the past 30 days have dipped slightly to -1.1%, but long-term returns have dropped significantly by -31.7%. The platform suggests that the meme coin could regain its positive momentum once Bitcoin manages to stabilize and altcoins start thriving again.

Santiment noted that the number of Shiba Inu (SHIB) wallets holding less than 1 billion SHIB has dropped to its lowest point since November 2022, suggesting a significant amount of fear, uncertainty, and doubt (FUD) within the SHIB ecosystem. The platform suggested this could be due to large players accumulating a larger portion of the circulating SHIB supply.

Fear, Uncertainty, and Doubt (FUD) signifies the dissemination of pessimistic or inaccurate information, whispers, or sentiments that induce fear among investors, possibly leading to increased selling activity in the market. Such a trend is often viewed as an early indicator for significant price fluctuations.

Last but not least, Santiment maintained that the volume of social discussion surrounding SHIB has been “extremely low” since July, reflecting “a sense of indifference and frustration from traders.” 

Some Good Signals for the Bulls

Despite the challenging circumstances previously discussed, there are indicators suggesting that SHIB‘s price might be moving towards an upward trend. For instance, the Shiba Inu exchange netflow, which has predominantly shown negative values over the past week.

Shiba Inu FUD Reaches a ‘Tremendous’ Level as This SHIB Indicator Plummets to a 22-Month Low: Details

The progression seems to indicate a move towards personal custody over digital assets, potentially lessening the instant urge to sell.

Moving forward, let’s discuss the self-destruct feature of the meme coin. Incredibly, the burn rate has skyrocketed by an astounding 8,000% within the last day, leading to over 3 million tokens being sent to an empty address.

The aim of this program is to decrease the number of SHIB coins in circulation, making them less common and potentially increasing their worth over time. Currently, about 410 trillion tokens have been eliminated, with 583.4 trillion still in circulation.

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2024-09-11 19:50