Shiba Inu's Network Activity Plummets to 2025 Low

Coin WorldMonday, Feb 10, 2025 11:25 am ET
1min read

Shiba Inu Faces Decline as Network Activity Hits 2025 Low

Shiba Inu (SHIB), the popular meme coin, has experienced a significant decline in network activity, with new addresses and daily active addresses dropping to their lowest levels so far this year. According to data from Santiment, the number of new addresses trading SHIB has plummeted by 62% since January 19, with only 1,814 new addresses created on Sunday, marking the lowest daily count since the start of the year. This downturn follows the market-wide retreat from meme coin speculation, leaving SHIB struggling to maintain the hype-driven interest it initially enjoyed.

Moreover, the number of daily active addresses trading SHIB has also plummeted. As the market rally fueled by the "TRUMP and MELANIA" phenomenon lost traction, the number of active addresses trading SHIB trended downward. On February 9, 4,690 active wallet addresses engaged in at least one SHIB transaction, marking a 53% drop from the year-to-date high of 9,928 active addresses recorded on January 19.

A drop in an asset's daily active addresses and new demand signals reduced interest and participation in the asset. This leads to lower trading volumes and a surge in bearish sentiment among investors. Therefore, this decline in SHIB's network activity indicates a weakening market for the asset, making it more susceptible to price drops and volatility.

On the daily chart, SHIB's price remains under the descending trend line, which it has traded below since December 9. This is a bearish pattern formed when an asset's price creates lower highs over time, signaling a downtrend in the market. This pattern suggests that selling pressure dominates the SHIB market, and the meme coin value will likely continue to decline. In this scenario, the coin's price could fall to $0.000014.

Conversely, if the leading meme coin sees a spike in new demand, it may drive its value above the descending trend line to trade at $0.000018.