The meme-inspired cryptocurrency Shiba Inu has lost more than 55% of its value over the past six months, to now trade at $0.00001348 as it recently suffered from a wider market downturn that saw it dip 3% in a month.
While the cryptocurrency s up more than 30% year-to-date, recent analysis by blockchain analytics firm Santiment has shed light on its ecosystem and found that its investors are enduring a “tremendous level of FUD [Fear Uncertainty and Doubt]” while wallets holding over 1 billion SHIB hold the “vast majority” of funds.
Per Santiment’s analysis, the percentage of the meme-inspired cryptocurrency’s supply held by wallets with less than 1 billion SHIb is now at its lowest level since November 2022.
Per the firm the level of social discussion surrounding SHIB has “been extremely low since late July, and has basically been on the decline all year long.” Sentiment for the cryptocurrency is “showing a slight negative bias” as smaller retail traders “have been dropping out of the asset like flies.”
Meanwhile leading memecoin Dogecoin has seen short-term traders showcase a slight profit, while long-term traders “are down near their lowest levels in the past year.”
Per the firm retail trader wallets with 1 million DOGE or less hold around 11.8% of the cryptocurrency’s supply, the exact same level since they were at in the beginning of the year, and are currently accumulating.
On the other hand, retail traders for the meme-inspired cryptocurrency PEPE “have actually been showing tons of confidence over these past 3 months” as wallets with 1 million PEPE or more have “been gaining their portion of the available supply, using each dip as an opportunity to accumulate more.”
The firm noted that the opposite would be better, where retail traders drop out and whales scoop up their sales. Shiba Inu’s set up, in contrast, means it could “potentially perform very well once Bitcoin is able to stabilize and altcoins are able to flourish again.”
Featured image via Unsplash.
