Because many meme coins ride the wave of obvious hype, established tokens such as Shiba Inu [SHIB] may have missed the season. The recent rally of numerous meme-inspired tokens has diverted attention away from the cryptocurrency that was the frenzy king of 2021.
The meme coin market is highly volatile, driven by hype, increased traction, and active participation. Interestingly, these were the driving forces behind trending assets such as Pepe [PEPE], which recently broke the $1 billion market cap barrier and reached an ATH.
Although interest in meme coins is typically fleeting, Shiba Inu and Dogecoin [DOGE] debunked the myth. However, there were several indications that SHIB was disqualified from competing this season.
As previously stated, increasing the price of a meme requires user adoption. However, this has not been the case for SHIB. The Shiba Inu ecosystem struggled to accept new addresses as evidenced by network growth.
As of this writing, network growth has slowed to 395. This decline implies that the daily interaction level and first-time transactions were unremarkable. As a result, the social volume appeared to have compensated for the drop in the metric discussed above. According to Santiment data, the SHIB social volume has increased since the April low.
The number of unique text documents on various social media platforms is estimated by social volume. This increase ensured that the metric reached 2,700 on May 6. Nonetheless, the increased hype has not positively impacted the SHIB price. According to CoinMarketCap, the token’s value has dropped 8.23% in the last seven days.
Following the rise of other memes, the total number of SHIB holders fell from 1.32 million on March 27 to 1.32 million today. While it recovered to 1.29 million, the trend indicated that some holders sold.
Meanwhile, supply on exchanges remained relatively flat during the same period. As a result, a situation like this could indicate that a large portion of the market was focused on retaining new memes with long-term potential rather than SHIB. Given the on-chain SHIB condition, it’s safe to say that the token’s time to shine has yet to arrive. Aside from PEPE, the token may face competition from Floki Inu [FLOKI], which recently received a Binance listing.
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