SNEAK PEEK
- Shiba Inu’s exchange supply surged in June, indicating potential selling pressure and price decline.
- Declining network growth suggests waning interest in SHIB, possibly leading to reduced demand and liquidity.
- Low one-day circulation of SHIB points to decreased transactional activity and market engagement.
Shiba Inu (SHIB) began June with a notable shift in its Exchange Net Position Change, a metric tracking the supply of tokens held in exchange wallets. As of June 1st, data from Glassnode revealed a positive Exchange Net Position Change of 2.60 trillion SHIB. This indicates a substantial influx of tokens into exchanges, which often signals selling pressure that can lead to price declines.
Historically, a positive Exchange Net Position Change suggests that more tokens are deposited into exchanges than withdrawn. This trend, if sustained, can exert downward pressure on the price due to increased supply in the market. Shiba Inu experienced a similar pattern in previous months, contributing to its recent price movements.
Historical Context and Price Movements
From March to mid-May, Shiba Inu’s Exchange Net Position Change was predominantly negative, implying more tokens were withdrawn than deposited. Despite this, the token’s price only saw significant gains in March, reaching $0.000035. April and May saw SHIB’s price stagnate, moving sideways without notable upward or downward trends.
According to CoinMarketCap data, SHIB’s price is currently $0.00002499, reflecting a 1.11% decline over the past 24 hours. The recent increase in exchange supply has raised concerns among investors about a potential further decrease in value. If the current trend continues, market analysts predict that SHIB could fall as low as $0.000020.
Source: CoinMarketCap
Declining Network Growth
Shiba Inu’s Network Growth, a metric indicating the number of new addresses interacting with the token for the first time, has shown a downward trend. Data from Santiment revealed a peak in Network Growth on May 29, which has since declined. This decrease suggests a waning interest and adoption of SHIB, further supporting the possibility of a price decline.
Network Growth is often seen as a measure of a token’s traction and potential for future price increases. The recent decline in this metric indicates that fewer new investors are engaging with Shiba Inu, which could lead to reduced demand and liquidity in the market.
One-Day Circulation and Liquidity Concerns
Another critical metric examined was Shiba Inu’s one-day circulation, which reflects the number of tokens used in transactions within 24 hours. As of the latest data, SHIB’s one-day circulation was 965.89 billion. This relatively low figure suggests that SHIB attracts less transactional activity than other leading memecoins.
Low circulation can indicate a lack of engagement from market participants, affecting liquidity. SHIB may struggle to maintain its price levels without sufficient liquidity, potentially leading to further declines. This situation emphasizes the need for increased demand and engagement from the broader cryptocurrency community to stabilize SHIB’s price.
The current market outlook for Shiba Inu remains uncertain. While the influx of tokens into exchanges and declining network growth suggest a potential continued price drop, recovery is possible if demand increases significantly. Substantial new interest and investment would be required for SHIB to avoid a further decline and potentially rally.
