Shiba Inu Struggles with Majority of Investors in the Red, While Dogecoin Dominates Profitable Positions
Data reveals concerning trends for SHIB as it grapples with a significant proportion of investors facing losses, contrasting with Dogecoin's success in profitability.
Shiba Inu [SHIB] is experiencing a notable challenge, with a considerable percentage of its investors facing losses, according to data from IntoTheBlock.
The statistics indicate that 66% of all SHIB holders, totaling 875,000 wallet addresses holding 797 trillion SHIB coins, are currently at a loss. In contrast, only 28.44% of SHIB holders, accounting for 377,000 addresses with 146 trillion SHIB coins, are in profit.
On the other hand, rival cryptocurrency Dogecoin [DOGE] is enjoying a more favorable situation, with 48% of all DOGE holders currently in profit, compared to 39% facing losses. A recent surge in demand for DOGE has been reported, with over 890,000 new accounts created for trading the meme coin in the past week, as reported by AMBCrypto.
However, Shiba Inu's challenges extend beyond investor profitability. The on-chain assessment of SHIB's network activity reveals a decline in new demand. IntoTheBlock data shows a 5% decrease in the daily count of new addresses created for SHIB trading in the last week. Additionally, the total number of addresses involved in SHIB transactions witnessed an 18% dip during the same period.
Year-to-date data further highlights the diminishing interest in SHIB, with a 19% decrease in new demand. This decline is evident in the 17% decrease in SHIB's daily transactions over the last week alone and a 21% decrease on a year-to-date basis, according to IntoTheBlock.
The correlation between an asset's network activity and its price performance is evident in SHIB's case. The altcoin has experienced a 10% drop in value since the beginning of the year, according to CoinMarketCap. The low demand for SHIB since the start of the year has had a negative impact on its price.
Despite the challenges, there is a glimmer of hope for Shiba Inu in the form of an uptick in Futures Open Interest. After a prolonged period of decline in January, SHIB's Futures Open Interest has surged by 38% since January 29th, reaching a total of $22.06 million at the time of writing. This resurgence suggests that traders are opening new positions, potentially signaling a shift in sentiment towards SHIB.