Interest in controversial meme token Shiba Inu appears to be waning as on-chain analysis shows significant drops in investor activity.
According to blockchain analytics firm Bloxy, both the number of transactions and volume for November fell compared to the previous month. With the transaction count falling by over 40%.
Since bursting into the top 20 in October, Shiba Inu has courted heavy criticism on the grounds of its lack of utility. Regardless of whether this point has merit or not, it remains that doggy meme coins are viewed with disdain by purists.
Nonetheless, with markets being irrational, the lure of “striking it big” from a meme coin investment keeps Shiba Inu relevant. But considering the cooling of interest, is $ SHIB’s time done?
Shiba Inu price stalls
Shiba Inu has been trending downwards since hitting an all-time high of $0.00008827 in late October.
The end of November saw $SHIB hit $0.00005444 – making a two-week high and giving hope that the downtrend had bottomed. But bulls could not sustain the breakout, leading to a continuation of selling so far in December.
Currently, Shiba Inu is down 53% from its all-time high and continuing to trend downwards. Compared to hot tokens, like Solona, which are fast approaching previous all-time highs, it appears as though investors are looking elsewhere.
On-chain analytics shows further cooling of interest in November
On-chain analysis by Bloxy supports the thesis that investors are beginning to turn their attention away from Shiba Inu.
November saw the number of transactions drop 42.3% to 802,183 from October’s all-time high of 1,389,574. Similarly, over the same period, the volume also fell, but not as significantly as transaction count, dropping 35.3% to $591,150,282,689,181.
Despite the apparent cooling of interest, whales continue to hold firm. As previously reported two weeks ago, Shiba Inu makes up the most popular ERC-20 holding in the top 1,000 ETH whale wallets, excluding Ethereum.
What was particularly striking was that Shiba Inu accounted for 20% of the total holdings, which was significantly greater than the second most held token at that time, $CRO, which made up 6% of the holdings.
Fast forward to now, and despite the continuing downtrend in price, Shiba Inu remains the most popular whale holding. While $FTX replaces $CRO as the second most held token, it’s interesting to note that $SHIB is again held in significantly greater quantity than the next token down.
This would suggest that whales aren’t done with Shiba Inu just yet, even though retail traders may be looking elsewhere.
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