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According to the data obtained, Shiba Inu (SHIB) had dropped to 19th place in terms of market value ranking at the time of writing. There had been a clear price decrease in the memecoin. This situation was attributed to the increase of Wrapped Bitcoin (WBTC) as WBTC managed to gain 2.42% in the last seven days, and its market value rose to $4.43 billion during this period.
On the other hand, SHIB showed a 1.83% increase, but its market value was lower at $4.40 billion at the time of publication. Typically, market value is a function of a cryptocurrency’s value and circulating supply.
Is Shiba Inu Facing Disappointment?
2023 has been a year that cannot be called the best for memecoins. SHIB experienced a 12.75% decline annually. However, this performance seemed somewhat surprising due to the optimism created by the events surrounding Shiba Inu earlier in the year. Shibarium was the source of this optimism.
Shibarium emerged as the layer-2 network of the Shibarium ecosystem built on the Ethereum (ETH) network. Despite the ecosystem coming to life, it did not meet the expectations in the crypto world, and SHIB’s price achieved almost nothing during the launch process and afterwards.
Moreover, it did not seem likely that the price and ecosystem of Shiba Inu would recover from the decline in a short period of time. Market participants also seem to share a similar view. According to Santiment, SHIB’s weighted social sentiment in the last 30 days dropped to -0.806, according to the time of writing.
The weighted sentiment metric takes into account the unique social volume the market has about a cryptocurrency. When the metric is positive, it may mean that participants have high hopes for the asset.
The Future of Shiba Inu
However, the negative sentiment that has emerged in SHIB may indicate a downward trend in a broader market condition at the time of writing. At the same time, activities in the Shiba Inu network also seemed to have decreased. Looking at the above graph, it can be seen that there were 103,600 active addresses as of September 1. As of the time of writing, this number has fallen to 72,300. This decrease indicates that market participants have significantly avoided interacting with the Shiba Inu network according to the time of writing. Therefore, rumors surrounding the SHIB token also seem to have decreased.
Technically, SHIB can continue to trade within a range or initiate a downtrend. The reason for this could be the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (blue) appeared to have fallen below the 50 EMA (yellow). This outlook may be due to bears holding control since August 30.
