Shiba Inu (SHIB), the popular dog-inspired cryptocurrency, is currently facing a tough time breaking free from its recent slump. According to on-chain data, both a decline in network growth and pressure from long-term holders looking to sell their holdings could potentially hinder SHIB’s price resurgence.
Recent data provided by Glassnode indicates a downward trend in the number of new addresses on the Shiba Inu ecosystem since the beginning of March. As of now, there are only 1,759 new addresses, a stark contrast to the 4,575 addresses recorded just a month prior in February.
This noticeable decline could suggest a lack of interest in the coin or a shift in focus toward other virtual assets.
Source: Glassnode
Shiba Inu Holders Offload Assets
The Shiba Inu community is grappling with more than just a decrease in new addresses. Santiment data suggests that long-term holders of the token are selling off their assets, leading to a significant sell-off and compounding the downward pressure on prices.
On top of this, on-chain data indicates a lag in active addresses, which measures the number of participants involved in successful transactions on the network.
A decline in new addresses on a blockchain network can indicate a waning interest in the platform’s core services, which could pose a challenge for SHIB in the weeks ahead unless the trend reverses.
As of the latest update, the number of active addresses for Shiba Inu over the past 30 days has declined to just 106,000. This suggests that SHIB users have been less inclined to conduct transactions using the token. The probable cause of this trend could be SHIB’s recent underwhelming performance, which has led to a significant drop of 18.65% within the same time period.
Market analysts and SHIB investors alike are left speculating whether the current conditions will allow the popular cryptocurrency to rebound anytime soon.
SHIB Burn Rate Increasesd
One curious development has been SHIB’s burn rate, which has skyrocketed by an impressive 5,000%. Despite this surge, the token’s value has remained flat, with no significant change observed over the past fortnight.
SHIB total market cap now at $6.4 billion on the daily chart at TradingView.com
In normal circumstances, a rising burn rate would typically lead to an asset’s increased value due to a decrease in supply. This phenomenon is rooted in the fundamental principles of supply and demand – when an asset becomes scarce and demand for it remains consistent or even expands, its price should appreciate.
Nevertheless, bullish investors may regain control if SHIB manages to break through its current resistance level at $0.000012, which could lead to a more sustained price upswing.
-Featured image from Coopers Fire