- The number of Shiba Inu holders dropped sharply recently according to data from CMC.
- SHIB continues to see growing adoption from mainstream and crypto players.
- Downsides however remain in the SHIB market.
According to data from cryptocurrency data site Coinmarketcap, on-chain data indicates that holders of meme coin Shiba Inu (SHIB) recently experienced a sharp decline. Having reached an all-time high of 992,986 holders on 15th November, it experienced a steep drop the next day, declining to around 968,871 – a difference of 24,115 in a day. It has however been climbing back up gradually and seems to be fixated on grappling the 1 million holders mark.
The metric has been rising meteorically over the past few months as SHIB has been in the limelight and recording massive price gains. SHIB’s price performance has seen it increase in value by over 4,000%. Even at its current price where it is around 40% down from its all-time high, it has 70% of its holders in profit, and 9% at break-even point, with 21% in losses according to on-chain data.
The canine-themed cryptocurrency also seems to be staging a comeback on the day as well. It has been mounting in the last 24 hours despite the slump in the rest of the cryptocurrency market, currently trading at around $0.000051, up 12.84% on the day.
The past few months have been massive for the dog-themed cryptocurrency. It has been pushed to new levels of adoption by the lobbying of the vibrant community behind it, the SHIBArmy.
Very active on social media, the community has been instrumental in SHIB being integrated by several platforms in the cryptocurrency industry and in the traditional sector. This week, SHIB has been added to two cryptocurrency exchanges, Bitpanda and ZenGo. Bitpanda, which is backed by PayPal co-founder Peter Thiel, made the announcement this week that it was introducing a euro trading pair for Shiba Inu.
Downsides in the SHIB market
Despite its growing adoption and surging prices, SHIB is still plagued by some downsides that are playing a role in the skepticism of some market participants.
For one, it is characterized by short-term holders. While the crypto asset is still young, the fact that about 78% of the meme coin circulation supply is held by whales has not built reliance. This is because, with such concentrations in whale holders, the outsized holders can influence the market considerably with their actions.
An instance of this was displayed recently when a whale wallet that held around 13% of the circulating supply of SHIB and was thought to be inactive, suddenly began moving around its holding, causing a bit of panic in the market as market participants expressed concern about what would happen to prices should the wallet dump that quantity of SHIB on the market.