SHIB Loses 30,000 Holders as Meme Coin Interest Wanes
According to CoinMarketCap statistics, the number of SHIB holders decreased by 32,832 on March 17, after a steady three-month climb.
From March 16 to 17, the number of unique addresses on the network decreased from 1,199,453 to 1,166,621, according to CoinMarketCap statistics, aligning with the network’s fourth straight month of decreased on-chain transactions. The number of on-chain transactions declined from 283,268 to 257,003 during January and February 2022.
According to Google Trends, the number of Google users looking for “Buy Shiba Inu coin” plummeted from 100 on Nov. 30, 2021, to three in February 2022. Between January 28 and February 3, 2022, SHIB lost 4,223 addresses, dropping from 1,161,662 to 1,157,438, bringing a three-month increase in holders to an end.
According to analytics platform IntoTheBlock, 95 percent of holders of SHIB have held the stock for between one and twelve months, showing a positive long-term mood, while short-term sentiment is gloomy. Seventy-nine percent of all SHIB in circulation are owned by individuals with a net worth of at least $100,000.
SHIB is an Ethereum-based token, which means that its usefulness may be boosted by using smart contracts for decentralised financial applications. In the summer of 2021, the creators of SHIB launched a ShibaSwap Decentralized Exchange, allowing owners to provide liquidity by staking and collecting interest on their staked tokens. Nonetheless, market dumps of SHIB, such as ones conducted by Vitalik Buterin, force recipients to sell the token, decreasing the price. The token will acquire value only when the burn rate exceeds the supply.
Investors hedge their Bitcoin bets
The decline in interest might signal that cryptocurrency traders are reducing their exposure to a risky asset. SHIB’s danger stems from the fact that the smart contract code underlying the DEX is publicly accessible, in contrast to Bitcoin and Ethereum, which both have publicly accessible codebases. There is evidence that long-term holders have been amassing Bitcoin, with the total amount held reaching 11.7 million BTC on March 17, 2022, the same day SHIB lost almost 30,000 subscribers. This might signal that long-term investors are hedging their bets against SHIB in favour of BTC.
Turkish Economy Minister has shown interest in SHIB, despite the meme coins’ substantial price decline from its all-time high on Oct. 28, 2021, discussing its adoption with a member of Turkey’s “SHIB army” and other Turkish legislators.