Shiba Inu’s [SHIB] slump may continue despite increased demand: Here’s why

ambcrypto.com:

According to Glassnode, new addresses on the Shiba Inu [SHIB] ecosystem have trended on the downside since the first week in March. At press time, the number of new addresses was 1,759 — a notable decline from the 4,575 recorded in February.

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The drop means that first-time transactions on the network were relatively absent, as new investors did not consider SHIB worthy of addition.

Source: Glassnode

The press time situation of the token was one that the crypto community met with surprise. Just a few weeks ago, the meme community was agog about the Shibarium beta launch. But all that hype has been quenched even though the final ecosystem has been set in motion.

However, the SHIB’s activities on exchanges  have been quite odd. According to Santiment, only a few occasions have ended in an inflow and outflow spike since September 2022.

But as of 23 March, the SHIB exchange inflow reached 2.18 trillion. Such a high value indicated increased selling pressure and possible volatility for derivative traders. On the other hand, the exchange outflow seems to have neutralized the effect even before the aforementioned data.

On 20 March, the exchange outflow was 24.96 trillion. Three days later, it repeated a similar feat at 19.92 trillion. As opposed to the exchange inflow, the outflow reflects decreasing sell pressure. 

Though both had reduced in the interim, the outflow surpassed the inflow at press time. This means that more SHIB investors were willing to hold instead of letting go of the tokens. However, that is no guarantee that it to keep SHIB from falling further.

Source: Santiment

The new addresses were not the only starved metric on the Shiba Inu network.