What’s Hindering Shiba Inu During a ‘Bull Market’?

shiba inu

Shiba Inu has not been doing as well as expected in the market despite the current bull run.

Note, there have been numerous milestones and achievements in the crypto space recently, with Bitcoin surpassing $30k and reaching a 10-month high and Ethereum’s Shanghai upgrade going live. However, these events did not trigger a renewed rally for cryptocurrencies in the market. 

Most assets, including meme coins, have continued to consolidate, with Shiba Inu declining by about 0.8% every week and increasing by approximately 1% on a daily basis, revealing the lackluster momentum in the market.

Read Also: NOWPayments-Shibarium Collaboration: Poised to Boost SHIB Adoption

Other Contributing Factors

Lately, there has been a decrease in the duration for which Shiba Inu investors hold onto their coins. In the past week, the average holding period before transactions have reduced by approximately 59%, and monthly, it has contracted by 36%.

This suggests that the market is becoming more concentrated with short-term traders instead of long-term holders. The shift in this pattern may indicate that the recent 1% increase in SHIB’s value may not have enough momentum to evolve into a significant rally at this moment, as depicted below.

shiba inu

It’s important to highlight that the Shiba Inu ecosystem has experienced an influx of traders recently. In the past month alone, the number of traders has increased by almost 300%, which supports the narrative of a decline in the holding period.

Similarly, the average transaction size has decreased notably compared to the peak observed in early April. While transactions were averaging at $45.8k during that time, they now stand at only $7k, which suggests that participants may be hesitant to engage with Shiba Inu at this stage. 

Therefore, unless there is an improvement in the aforementioned conditions, an organic rally for SHIB may not materialize.

Read Also: Shiba Inu Futures Garners Over 2.4 Trillion Tokens in Open Interest

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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