Shiba Inu Price Drops: SHIB Meme Coin Traders Are Unfazed

Shiba Inu price drops, but SHIB traders are unfazed. Diamond hands hold 80% of the supply, while Shibarium hits 1 billion transactions. Will the meme coin market recover? Eyes on Solana, where most tokens were launched via Pump.fun in 2024.

Despite the Shiba Inu price sinking 7% in the last week of trading, on-chain data suggests that the sell-off shouldn’t scare off SHIB holders and traders.

Recent data from IntoTheBlock shows that long-term holders, often referred to as “diamond hands,” are confident in the meme coin’s potential.

(Source)

The blockchain analytics firm has observed that these holders control over 80% of the supply.

This high concentration of ownership among whales suggests that they believe the token is among the best cryptos to buy. Despite any short-term volatility, it is poised for a strong recovery.

Meme Coin Market Under Pressure: Can Shiba Inu Price Chart Course to Safety?

Overall, meme coins have struggled after activity peaked in late Q4 2024 and early January.

So far, the total market cap of all meme coins stands below $50 billion, dropping by more than 60% after rising to as high as $120 billion in early 2025.

Dogecoin is the most valuable meme coin, with a market cap of over $24 billion. Shiba Inu comes in second, while Pepe seals the top three.

(Source)

Interestingly, despite the initial pump, TRUMP, the official meme coin by the Donald Trump team, is down by over 80%. Although it is among the best Solana meme coins, TRUMP trades below $10 at spot rates. At its peak, the meme coin changed hands above $70.

As meme coins recover, Shiba Inu is the top performer, based on price action in the last week of trading.

Looking at the performance in the top 10, Shiba Inu is firm, losing only 7% in the last seven trading days, and leads the table versus SPX, down 10%, and DogWifHat, down 22% in the same period.

The meme coin sell-off can be attributed to the slowdown in Solana, where most trading and launching occur.

There are now fewer meme coins launching on Pump.fun, signaling dwindling interest.

As of April 3, 6,739 tokens had been launched, bringing the total number of meme coins launched on Pump.fun to over 9 million.

(Source)

However, the number of tokens launched is far lower than the nearly 61,000 meme coins launched on January 22.

Shibarium Hits Major Milestone: One Billion Transactions

If Solana meme coin activity picks up steam, it could spill over to Shiba Inu and the Ethereum ecosystem.

In that case, layer-2 platforms might see more activity, boosting SHIB.

Eyes are on Shibarium, the Ethereum layer-2 by Shiba Inu.

Although it may not be as popular or manage billions like Arbitrum and Base, there has been activity.

According to ShibaScan, the network recently processed over 1 billion transactions, pointing to adoption.

(Source)

In the last day alone, Shibarium processed over 2.75 million transactions.

Meanwhile, the number of unique addresses on Shibarium is rising, cracking 194 million.

If network adoption grows, combined with SHIB whale activity, the token might increase, shaking off weaknesses.

SHIB Targets Recovery: Will Meme Coins Rise to Q4 2024 Levels?

Bullish as this may be, there are concerns about meme coins.

In November 2024, Changpeng Zhao said meme coins were becoming “a little weirder.” He urged developers to build solutions that solve real-world problems.

I am not against memes, but meme coins are getting “a little” weird now.

Let’s build real applications using blockchain.

— CZ BNB (@cz_binance) November 26, 2024

Critics also think meme coins are nothing more than speculative gambling driven by hype rather than fundamentals.

I think everyone knows that memecoins are literal zero-sum gambling… like roulette but with better odds, still negative ev.

In this context, memecoins are great. A new kind of casino, and casinos are fun.

For those who don’t realize it’s just gambling–those who have an… https://t.co/5X2bQ4Lq9i

— Erik Voorhees (@ErikVoorhees) January 30, 2025

The buzz on social media or celebrity endorsements tends to influence price, only for these tokens to crash when excitement fades.

Others insist meme coins exist for entertainment and have no utility, despite some, like Pepe, commanding billions in market cap.

However, supporters say meme coins are here to stay, arguing they are popular because VCs fund unlimited tokens that don’t do anything.

1. Memecoins shape the public’s view to make crypto look like a casino

2. Their adoption is the result of VCs funding unlimited tokens that don’t do anything new (dex forks, endless infrastructure “modular” coins, etc.)

Solving #2 will solve #1 if VCs really hate memes so much

— tunez (evm/acc) (@cryptunez) April 25, 2024