- Contrary to several trending memes, SHIB transactions from new addresses were almost absent.
- Social volume recovered, but was not enough to buy back holder loyalty.
With many meme coins riding the wave of eye-catching hype, already established tokens are loving Shiba Inu [SHIB] maybe missed the season. Needless to say, the continued rally of countless meme-inspired tokens in recent weeks has shifted the focus away from the cryptocurrency that was the frenzied king of 2021.
Realistic or not, here it is SHIB’s market capitalization in terms of PEPE
SHIB: A token absent from the group
First, the meme coin market is highly volatile and mostly driven by hype, an increase in traction, and active participation. Interestingly, these were the driving factors of trending assets like Pepe [PEPE] which recently broke the $1 billion mark market capitalization, and hit an ATH.
While interest in meme coins is usually short-lived, Shiba Inu and Dogecoin [DOGE] seems to have busted the myth. However, there were several reasons to propose that SHIB has been disqualified from participating this season.
As mentioned earlier, acceptance by the user is paramount to increase the price of a meme. But for SHIB, that has not been the case. In fact, the Shiba Inu ecosystem has struggled to embrace new addresses, as evidenced by the network growth.
At the time of writing, the network growth dropped to 395. This drop implies that the daily level of interaction and first trades was nothing to rave about.
Source: Sentiment
Subsequently, social volume seemed to have made up for the drop in the metric discussed above. A look at Santiment’s data showed that SHIB’s social volume has increased since the April decline.
Social volume estimates the number of unique text documents on different social media platforms. This increase caused the stat to rise to 2,700 on May 6.
No prime time yet
Nevertheless, the boost in hype failed to positively influence the SHIB price. According to CoinMarketCap, the token value is down 8.23% in the past seven days.
After the emergence of other memes, the total number SHIB holders down from 1.32 million on March 27. While it was able to recover to 1.29 million, the trend suggested that some holders sold.
Is your wallet green? Check the Shiba Inu profit calculator
Meanwhile, supply on exchanges remained somewhat flat around the same period. So a situation like this could indicate that much of the market was focused on keeping the new memes with long-term potential rather than SHIB.
Source: Sentiment
Given the on-chain SHIB condition, it could be safe to say that the time for the token to shine has not yet arrived. In addition to PEPE, the token may also face competition from Floki Inu [FLOKI], who recently one Binance List.
