Shiba Inu (SHIB), a rival of Dogecoin (DOGE), may currently be experiencing a period of underperformance, but crypto analytics firm Santiment suggests that this memecoin still holds the potential for a bright future.
Santiment’s analysis reveals a sudden surge in activity within the Shiba Inu network, indicating the possibility of an upcoming upward movement. The firm states, ‘Shiba Inu has witnessed a significant rise in the creation of new daily addresses, consistently surpassing 2,500 per day over the past few weeks. Despite the lackluster price performance, our latest findings shed light on the reasons behind the promise of one of the favorites of 2021.’
Santiment also highlights several positive indicators for SHIB. The token ranked among the top in terms of transaction fees on Wednesday. Additionally, a large portion of SHIB token holders find themselves in a loss position, and there is a decreasing supply of SHIB on crypto exchanges.
Elaborating on these trends, Santiment remarks, ‘A closer analysis of the underlying patterns suggests a potentially favorable turn of events for Shiba Inu. Key drivers include network growth, network realized profit loss being completely in the red, and a diminishing supply of SHIB on exchanges.’
When examining the Network Profit/Loss (NPL) metric, Santiment notes that losses are predominant, hinting at a potential reversal of this trend in the future.
According to Santiment’s chart, approximately 8.6% of SHIB’s supply is currently held on crypto exchanges, down from around 9.1% in June. A declining supply on exchanges may signify a reduction in selling pressure for Shiba Inu.”
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.