The Shiba Inu has reached a milestone by crossing 4 million cards. This feat is a historic moment for the token, symbolizing its growing popularity in the digital asset community. An analysis of the address metrics on Glassnode shows a steady increase in the number of Shiba Inu addresses over the past few months, making this an impressive milestone.
Addresses growth signals potential, but activity paints a different picture
While the increase in total addresses may seem promising at first, a closer look at the Shiba Inu’s activity metrics paints a contradictory picture. Despite the increase in the number of addresses, the number of active addresses has declined significantly from previous highs. This discrepancy suggests that while the number of Shiba Inu-related addresses is increasing, the level of actual activity in the network remains relatively low.
Moreover, the analysis of new addresses follows a similar downward trajectory, indicating a decrease in the adoption rate or interest in the token. These trends raise questions about the sustainability of Shiba Inu’s growth and its ability to keep pace in the highly competitive cryptocurrency market.
Shiba Inu price action stalls amid uncertainty
Against this backdrop of mixed signals, Shiba Inu’s price action has experienced a period of stability. Although the price rose significantly around March 5, the token has struggled to maintain momentum, coinciding with the increase in address activity. Currently trading around $0.000027, the Shiba Inu price shows a lack of clear directional bias, signaling uncertainty among investors and traders.
Analysts attribute Shiba Inu’s steady price movements to a combination of factors, most notably the prevailing sentiment across the cryptocurrency market and the lack of significant developments specific to the token.
Despite its widespread recognition and community support, Shiba Inu’s valuation is susceptible to external influences and market dynamics, indicative of the inherent volatility in the cryptocurrency ecosystem.
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While the Shiba Inu enjoys a devoted following, its price trajectory highlights the importance of monitoring both internal and external catalysts that may affect its valuation. Analysts caution investors to be cautious and recognize the subtle correlation between the price of the Shiba Inu and broader cryptocurrency market dynamics.
Trading volume shows stability in fluctuations
Meanwhile, aside from the price action, trading volume for the Shiba Inu has remained relatively steady in recent times. With trading activity hovering around $527 million, no significant increase or decrease has been observed in the near term.
This stability indicates that there is still a consistent level of interest and participation in Shiba Inu trading activities even though overall market sentiment is uncertain.
Featured image from Pexels, charts from TradingView