Shiba Inu Faces ‘Tremendous’ FUD as SHIB Indicator Hits Low

TL;DR

• The count of small Shiba Inu (SHIB) holders has notably dropped, indicating heightened levels of Fear, Uncertainty, and Doubt (FUD).
• Even amid the prevailing bearish trends, elements like a transition to self-custody and an uptick in SHIB’s burn rate might contribute to a potential price increase in the future.

Exit of Small Investors from the Ecosystem

The popular meme token Shiba Inu (SHIB) has experienced a decline over the past month, with its price dropping by 5.5%, currently hovering around $0.00001328. This downturn has understandably impacted investors adversely.

According to the crypto analytics platform Santiment, the 30-day average trading returns have seen a slight decline of -1.1%, while the long-term returns have dropped by -31.7%. The platform suggests that the meme coin could regain momentum if “Bitcoin manages to stabilize, allowing altcoins to thrive once more.”

Santiment also noted that the number of wallets holding less than 1 billion SHIB has reached its lowest point since November 2022. This could suggest “a significant level of FUD” within the ecosystem, with larger holders dominating the larger proportion of the circulating supply.

Fear, Uncertainty, and Doubt (FUD) refers to the dissemination of negative or misleading information, rumors, or sentiments that incite panic among investors, potentially contributing to sell-off pressures in the market. The increasing levels of FUD are often seen as a precursor to significant price fluctuations.

Lastly, Santiment highlighted that the volume of social discussions around SHIB has been “considerably low” since July, indicating “a feeling of apathy and frustration among traders.”

Positive Signals for Bulls

In contrast to the bleak outlook highlighted earlier, there are some indicators that may suggest SHIB’s price could experience an upward trend. One such indicator is the Shiba Inu exchange netflow, which has predominantly been negative over the last week.

This trend indicates a movement from centralized exchanges towards self-custody methods, which may alleviate immediate sell-off pressures.

Another noteworthy point is the meme coin’s burn mechanism. The burn rate has surged by over 8,000% in the last 24 hours, leading to more than 3 million tokens being sent to an address that renders them void.

The primary aim of this program is to diminish the circulating supply of SHIB, which could enhance its scarcity and potential value in the long term. To date, approximately 410 trillion tokens have been eliminated, leaving 583.4 trillion tokens still in circulation.