1. Retail Trader Exodus and Shifting Supply Dynamics
2. Decline in Social Activity and Sentiment
3. Dogecoin, PEPE, and Other Meme Coins

Shiba Inu, a popular meme cryptocurrency, currently faces significant headwinds, reflecting broader struggles within the crypto market. Recent data from Santiment highlights a marked decline in the token’s market performance, with the asset underperforming compared to other meme coins like Dogecoin.

Retail Trader Exodus and Shifting Supply Dynamics

One of the more notable trends in the Shiba Inu market is the exit of retail traders. Wallets holding less than 1 billion SHIB tokens now represent a smaller portion of the total supply, marking the lowest level since November 2022. This suggests that a significant number of smaller retail traders have sold off their holdings, exiting the market amid poor performance. Conversely, larger wallets—those holding over 1 billion SHIB—now dominate the token’s supply. According to Santiment, this shift signals increased fear, uncertainty, and doubt (FUD) within the Shiba Inu ecosystem, with smaller investors seemingly losing confidence in the token’s prospects.

Decline in Social Activity and Sentiment

Throughout 2024, Shiba Inu (SHIB) has also experienced a downturn in social media activity and community engagement. Conversations about the token have hit their lowest levels since July, which could reflect growing dissatisfaction among traders. Many smaller retail participants have exited the market, contributing to this decrease in online discussion. Despite these challenges, analysts like Lola remain cautiously optimistic about Shiba Inu’s future. While the token has struggled recently, it is not entirely out of the conversation for potential gains, especially if the broader cryptocurrency market recovers.

Dogecoin, PEPE, and Other Meme Coins

In contrast to Shiba Inu, Dogecoin and other meme coins have shown mixed performances. Short-term Dogecoin traders have seen some profits, but long-term holders still face losses, with an average decline of 20.8%. Retail interest in Dogecoin has remained relatively stable, but there are no clear signs of significant accumulation of the digital asset among retail traders this year. Meanwhile, PEPE, another meme coin that has gained popularity, has fared better than most. The token has attracted a new wave of traders, and despite the challenging market conditions, it has increased its market cap by 50% over the past five months.

While the Shiba Inu (SHIB) market has faced significant challenges, the long-term outlook for the token remains uncertain. The departure of smaller retail traders and the dominance of large holders suggest that investor sentiment has shifted significantly. Some believe that if Bitcoin stabilizes and the broader altcoin market improves, Shiba Inu (SHIB) could regain momentum. The Shiba Inu ecosystem remains in flux for now, with the coming months likely to reveal more about the token’s future trajectory.