The well-known dog-themed meme cryptocurrency Shiba Inu has suffered a setback as its number of small wallet holdings has notably decreased amid widespread market volatility, causing increased anxiety among crypto investors.
Are Small Holders of Shiba Inu Walking Away From the Asset?
A recent study by Santiment, a prominent market analytics firm, indicated that the number of Shiba Inu wallets with minimal SHIB holdings has dropped to a two-year low, suggesting a potential shift in sentiment among retail investors.
In particular, wallets with fewer than 1 billion SHIB are categorized as small holdings, and Santiment noted that the last time figures were this low was in November 2022. The simultaneous decline of smaller wallets and volatile market conditions raises concerns about SHIB distribution going forward.
While SHIB’s smaller wallets have decreased in number relative to Dogecoin, the leading meme coin, the platform emphasized that Shiba Inu’s retail investors are showing notable relief. This drop reflects a significant amount of FUD circulating within the community, with large wallets (1 billion SHIB and above) holding most of the assets.
Santiment also noted that since late July, there has been an extremely low level of social discourse surrounding Shiba Inu, with this trend persisting throughout the year. The rapid exit of smaller retail traders from the asset underscores a growing dissatisfaction and lack of interest in SHIB.
In summary, Santiment ranks SHIB as the worst-performing Dogecoin in 2024 due to a substantial decline in both average and long-term trading yields. They report that long-term trading returns plummeted by an astounding -31.7%, while the 30-day average trading returns decreased by just -1.1%. However, once Bitcoin stabilizes and altcoins regain traction, this shift could set the stage for a successful rebound for the meme coin in the coming months.
Is SHIB Preparing for a Significant Upsurge in 2025?
Despite the recent downturn surrounding Shiba Inu, numerous crypto analysts maintain an optimistic view on the meme coin’s prospects, positioning it as a noteworthy asset in the rapidly changing digital asset landscape.
Investing Haven, a cryptocurrency expert, has predicted a bullish momentum for SHIB in 2025, highlighting recent positive movements on its chart, as the meme coin tests a critical support level at $0.0000111.
According to the analyst, Shiba Inu appears to be showing signs of a potential W-reversal on the weekly chart. If SHIB remains solid at this support level, it may initiate a bullish reversals in the long term. He predicts this rally could unfold in mid-2025, encouraging investors to monitor this timeline closely.
Featured image from Unsplash, chart from Tradingview.com
