Once a popular memecoin, SHIB transactions dropped 34% from March 2022 to April 2022 and 70% from Q1 2021.
Shiba Inu (SHIB), a memecoin named after a Japanese hunting dog, is declining in popularity, having hit an all-time low transaction volume in April 2022. This despite $1B in investment within an hour when listed by zero-fee stock-trading platform Robinhood, following a petition garnering over 500,000 signatures.
The transaction volume for the ERC-20 token dropped from 329,893 in March 2022 to 216,260, in April 2022, the lowest value since March 2021, when the number of transactions was 37369, according to analytics website bloxy.info.
But the writing has been on the wall since early 2022. Between Jan. 28 and Feb. 3, 2022, the number of addresses holding SHIB dropped by 4,223, and between Mar. 16 and Mar. 17, 2022, from 1,199,453 to 1,166,621, a decline of almost 30,000. Short-term sentiment in mid-March was bearish, while data from IntoTheBlock suggests that the long-term outlook is bullish since 93% of “hodlers” have held SHIB between one and twelve months. Over three-quarters of circulating SHIB are held by those with $100K or more.
Other coins stealing the show
Meanwhile, other coins have been stealing SHIB’s thunder. ApeCoin, a governance token in ApeCoinDAO, linked to the Bored Ape Yacht club NFT collection, rallied in April due to the anticipated sale on Apr. 30 of Otherdeeds via a so-called Dutch Auction. The token more than doubled since a monthly low of $10.65 on Apr. 7, rallying to approximately $24 before the sale but crashing to about $16 soon after, as complaints flooded in about the cost of minting Otherdeeds NFTs on Ethereum, data from CoinMarketCap shows. Otherdeeds are NFTs for virtual land located in a metaverse game Otherside by Yuga Labs.
Dogecoin (DOGE), SHIB’s predecessor in the memecoin space, recently saw $2B added to its market capitalization when reports surfaced that a Twitter takeover by Elon Musk was set to be reached. DOGE rallied from $0.1248 to $0.1374 in under an hour, dropping to $0.130960 at the time of writing.
SHIB boomed in 2021
Despite declining short-term interest in SHIB, it garnered significant attention as a form of payment in 2021. The Flexa Payments Network added SHIB as a payment option in December, as on-chain transaction activity peaked at 1,389,603 in October 2021. Newegg, an e-commerce platform, started accepting SHIB on Black Friday via a partnership with BitPay. At the same time, crypto exchange Kraken listed the memecoin from Nov. 30, 2021.
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