Popular dog-themed meme coin Shiba Inu has taken a hit as its small wallet holdings have witnessed a significant decline in the midst of general market uncertainty, which has triggered heightened fear among cryptocurrency investors.
Shiba Inu Small Holders Abandoning The Digital Asset?
In a recent report from Santiment, a leading market intelligence platform, it was revealed that the number of Shiba Inu wallets containing small quantities of SHIB has plummeted to its lowest point in almost two years, indicating a potential change in attitude among retail investors.
Specifically, wallets holding less than 1 billion SHIB are typically considered as small holdings and Santiment noted that the last time the numbers were this low was in November 2022. With the decline in smaller wallets coinciding with unstable market conditions, the development could raise doubt about SHIB distribution going forward.
Although SHIB’s small wallets have plummeted compared to Dogecoin, the largest meme coin, the platform highlighted that Shiba Inu’s retail traders are displaying a great deal of relief. The drop indicates that there is a great deal of FUD spreading over the network, with big wallets containing 1 billion SHIB and above controlling the majority.
Santiment also pointed out that since late July, there has been an extremely low degree of social debate about Shiba Inu, and this trend has essentially continued throughout the year. Considering how many smaller retail traders have been leaving the asset at a rapid rate, this decline in social interactions illustrates traders’ dissatisfaction and lack of interest in SHIB.
Overall, Santiment has labeled SHIB as the worst-performing Dogecoin in 2024 due to the substantial drop in both average and long-term trading returns. According to the platform, the long-term trading returns have decreased by an astounding -31.7%, while the 30-day average trading returns have fallen by just -1.1%. However, once Bitcoin, the flagship crypto asset, is able to stabilize, and altcoins can once again thrive, this development has the ability to position the meme coin for great success in the upcoming months.
SHIB Gearing Up For A Major Rally In 2025
Despite the negative events around Shiba Inu, multiple crypto analysts are very optimistic about the meme coin‘s potential in the long and short term, positioning it as a promising asset in the ever-evolving world of digital assets.
Investing Haven, a crypto expert has forecasted a bullish surge for SHIB in 2025, citing a positive development on its chart, as the meme coin is presently testing a major support level at $0.0000111.
According to the analyst, Shiba Inu appears to be displaying a possible W-reversal on the weekly chart, and with SHIB holding strong at the aforementioned level, it could trigger a bullish reversal in the long term. Thus he anticipates the rally to take place in the middle of 2025, urging investors to look out for the timeframe.
Featured image from Unsplash, chart from Tradingview.com
