Shiba Inu FUD Hits ‘Tremendous’ Level As This SHIB Indicator Falls To 22-Month Low – Details

TL;DR

The number of small Shiba Inu (SHIB) holders has declined significantly, reflecting high levels of fear, uncertainty and doubt (FUD). Despite current bearish sentiment, factors such as a shift to self-storage and an increase in SHIB’s burn rate could drive a future uptrend in prices. Small players leave the ecosystem

The popular meme coin Shiba Inu (SHIB) has taken a tumble over the past 30 days, dropping its price by 5.5% and currently trading around $0.00001328. Unsurprisingly, the fall has negatively affected investors in the asset.

SHIB Price, Source: CoinGecko

Crypto analytics platform Santiment estimated that 30-day average trading returns have fallen “slightly” to -1.1%, while longer-term returns have plunged -31.7%. According to the entity, the meme currency may return to the green lane once “Bitcoin is able to stabilize and altcoins can flourish again.”

Santiment further noted that the number of wallets with less than 1 billion SHIB has fallen to its lowest level since November 2022. The platform argued that this could indicate “a tremendous level of FUD” within ecosystem, with large players controlling the largest share of the circulating supply.

Fear, Uncertainty, and Doubt (FUD) refers to the spread of negative or misleading information, rumors, or sentiment that causes panic among investors, leading to possible selling pressure in the market. The rising level is usually considered a precursor to strong price changes.

Last but not least, Santiment maintained that the volume of social discussion around SHIB has been “extremely low” since July, reflecting “a sense of indifference and frustration among traders.”

Some good signs for the bulls

Contrary to the harsh conditions mentioned above, some factors suggest that SHIB’s price could be headed for an uptrend. An example is Shiba Inu’s net exchange flow, which has been predominantly negative over the past seven days.

SHIB Exchange Netflow, Source: CryptoQuant

The development suggests a shift from centralized platforms to self-custody methods, which can reduce immediate selling pressure.

Next on the list is the meme coin burning mechanism. The burn rate increased by more than 8,000% in the last 24 hours, resulting in more than 3 million tokens sent to a null address.

The ultimate goal of the program is to reduce the circulating supply of SHIB, making it scarcer and potentially more valuable over time. To date, approximately 410 trillion tokens have been destroyed, leaving 583.4 trillion in circulation.

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