Market intelligence platform Santiment informed crypto Twitter today that Shiba Inu (SHIB) has seen a significant rise in new daily addresses created, consistently registering over 2,500 per day in the past few weeks. According to the analytics platform, Shiba Inu was one of the tokens accounting for the highest transaction fees on Wednesday.
😺 #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
Despite the underwhelming price movements that it has showcased recently, Santiment assured its readers that the dog-themed meme coin still holds promise. The analysts on the platform believe the drivers of this trend include network growth, network realized profit loss, and supply of SHIB on exchanges.
The SHIB Network growth has been quite high lately, according to readings from Sentiments data. Additionally, in SHIB’s network realized profit loss metric, only loss is visible so far. This hints at a decreasing selling pressure. And, SHIB’s supply on exchanges, is the lowest since 2022. This shortage could translate into a spike in value.
However, the analysts added that understanding the true implications of this situation requires analysis from two distinct perspectives. Firstly, the unexpected attention showered on meme coins can often signal a market top or peak. In this particular instance, the focus on SHIB could be seen as a sign of market saturation or possible future decline.
The second perspective is that the recent attention could rejuvenate the forgotten token. As suggested by Sentiments metrics, daily active addresses for SHIB were underwhelming before this sudden surge in interest. This, according to the team, could indicate a newfound demand for the token.
At press time, SHIB was trading at $0.000007598 after it nudged up 1.05% over the past 24 hours. Despite the slow movement, the altcoin’s weekly performance remained in the green at +2.81%. Although it could not outperform market leader BTC, SHIB was able to hold up by 0.2% against ETH.