Shiba Inu is losing short-term investors. According to on-chain metrics, a significant amount of investors have turned away from the meme token in the past week. The volatile market structure accompanies Shiba’s loss of more than 20,000 investors.
Shiba Inu demand falls, investors move away from SHIB
As of June 2, the total number of unique addresses holding SHIB was 1,198.22, according to CoinMarketCap data. On June 8, that number dropped to 1,176,715. As a result, Shiba lost 21,507 investors in less than a week. At one point, 23,576 investors lost in just one day between June 3 and June 4.
Notably, prior to the decline, SHIB investors were rising steadily in conjunction with increased network activity. This interest in the meme token arose despite the downtrend of 2022. The drop in the number of investors comes after SHIB recorded a consistent decline in trading amid a turbulent 2022. Between January 2022 and May 2022, network activity fell by over 26%.
Investors are leaving Shiba despite major news
The decline in investor numbers came just after a recent record high. The sudden loss indicates that the hype around the meme token may once again disappear, potentially due to limited use. In an attempt to improve its prospects, the network recorded a significant token burn, which increased 190% in 24 hours as of June 2.
After the bull in 2021, part of the market voiced an uptrend for SHIB. Then Shiba Inu was added to the cart of multiple companies as a payment method. In fact, a CoinMarketCap community survey predicts that SHIB will trade at an average of $0.00002654 on June 30, 2022. However, SHIB is far from this level for now.
At the time of writing, it’s trading at $0.00001061, down 1.13% in the last 24 hours. In line with the market trend, it has lost 5% since last week. Despite holding its position among the largest altcoins, SHIB’s market cap has taken a 10% hit in the past seven days.
Is the Shiba Inu in danger?
Based on the above data, we can say that investors are selling unprofitable altcoins. This has been observed in the past. In the last two months, investors have accumulated approximately 1.02 trillion SHIB worth $10.6 million since SHIB fell 64.3%. Investors were hoping that the meme token would rebound.
Additionally, on May 31, Shiba recorded its highest daily loss in more than a year. This was when SHIB 3.71 trillion was included in transactions with a loss. After the May ATH
, the price started to decline, the presence of SHIB investors began to dwindle. As a result, transactions have also dropped significantly. Transactions, which averaged almost 70,000, have dropped to just 4.5k at the time of writing.
So, given the commitment of investors to the growth of the Shiba Inu, it is very likely that they will sell the 1 trillion SHIB obtained. Especially given that it accounts for less than 0.25% of the entire supply.
