Shiba Inu [SHIB] continues to see unprecedented demand from whales despite the bearish market. However, fundamentals on-chain metrics still paint a grim scenario whatsoever.
SHIB hasn’t been able to recover its seven-day losses while most of the top 20 coins have successfully done so. The meme token was 4.95% down over the week.
At press time, the #16 largest token barely saw any price uptick as per data from CoinMarketCap. It traded along the same old ‘consolidated’ $0.00001 mark. Clearly, something isn’t going SHIB’s way here.
Shiba Inu had an amazing 2021 run. However, its fortune is declining due to a decrease in interest in the token. Worldwide Google search queries entailing the keyword ‘Shiba Inu’ have fallen to their lowest level in over a year during July.
Source: Google Trends
Unfortunately, on-chain metrics showcased a similar scenario.
Shiba Inu’s trading volume has been decreasing over time. The chart from Santiment given below showed that the token’s transaction volume plummeted from $1.2 billion on 25 April to the current value of just above $530 million.
The decreasing volume could imply a lack of enthusiasm amongst investors. And, here’s one scenario that could explain this.
The supply held by top addresses has been declining at an alarming level. At the time of writing, it stood somewhere around the 60 mark.
Active withdrawals of SHIB have also been painting a bearish picture for the token. At press time, active withdrawals were 23 transactions on a seven-day moving average.
This is sharply down from active withdrawals of over 1,700 on a seven-day moving average in November 2021.
This sharp decline in active withdrawals indicated fewer SHIB transactions involving withdrawals from exchanges. This means that exchange participants kept their SHIB on exchanges to sell rather than move it into private wallets.
This potentially could indicate that selling momentum rose in the meme coin’s markets.
SHIB witnessed significant demand, especially from Ethereum whales.
Gimli, one of the 10 richest Ethereum whales, increased the amount of SHIB tokens in its account. According to WhaleStats, which tracks uploaded accounts, two whales bought a total of 533 billion tokens ($3.5 million).
Furthermore, the SHIB army burnt a significant chunk of the total circulation as well.
Regardless of such affection, SHIB still lacks enthusiasm.