- Santiment reports increased network activity on Shiba Inu, suggesting a potential uptrend despite disappointing recent performance.
- Key positive indicators include growing network size, holders largely underwater, and declining supply of SHIB on exchanges.
Shiba Inu’s Dark Horse Potential: Santiment’s View
Although Dogecoin’s rival, Shiba Inu (SHIB), has been underperforming in the recent crypto landscape, a brighter future might be on the horizon, according to the crypto analytics firm Santiment. The firm highlights an upsurge in Shiba Inu’s network activity, potentially indicating an incoming price escalation.
Piercing Through the Fog of Underperformance
As per Santiment’s analysis, Shiba Inu is witnessing a significant increase in new daily addresses, consistently over 2,500 per day for the past few weeks. Regardless of the tepid price performance, Santiment believes that this favourite token of 2021 holds promise for potential growth.
In a surprising revelation, Shiba Inu was among the top tokens on Wednesday based on transaction fees. Other favourable indicators include a considerable number of SHIB token holders being underwater and a dwindling supply on crypto exchanges.
In Santiment’s own words,
“A closer look at the underlying trends suggests there might be a positive spin to this development for Shiba Inu. The drivers include network growth, network realized profit loss completely underwater, and decreasing supply of SHIB on exchanges.”
Examining the Network Profit/Loss (NPL), Santiment observes “only loss visible yet,” implying that a trend reversal might be imminent.
Based on Santiment’s chart, approximately 8.6% of SHIB’s supply is currently on crypto exchanges, which has declined from about 9.1% in June. This reduction of supply on exchanges could suggest a decrease in selling pressure for Shiba Inu, offering a glimmer of hope for the token’s future.
Santiment postulates that the burgeoning demand for SHIB might spark a price rally. The firm remarks,
“The recent attention could breathe new life to a previously under-the-radar token. As suggested by our proprietary metrics, daily active addresses for SHIB were lackluster before this surge in interest, indicating a newfound demand for the token.”
Nonetheless, Santiment urges caution, pointing out that the surge in interest could also signal market saturation or a potential decline.
At present, Shiba Inu is trading for $0.00000728, showing a 1.7% decline in the last 24 hours. While the present circumstances may not look overly promising, the crypto community eagerly awaits the token’s potential resurgence.