More than half of all Shiba Inu holders are at a loss.
SHIB’s Open Interest has risen since the beginning of February.
Shiba Inu [SHIB] has a higher percentage of “out of money investors” compared to its rival Dogecoin [DOGE], according to data from IntoTheBlock.
Information from the data provider showed that 875,000 wallet addresses that hold a total of 797 trillion SHIB coins do so at a loss. This makes up 66% of all SHIB holders.
Conversely, only 377,000 addresses, accounting for 28.44% of all coin holders and holding 146 trillion SHIB coins, are in profit.
Source: IntoTheBlock
On the other hand, DOGE has a higher number of investors in profit. As of this writing, 48% of all the meme coin holders do so at a profit, while 39% of them are at a loss.
SHIB sees dwindling demand
AMBCrypto reported earlier that DOGE witnessed a surge in new demand in the last week. Over the seven-day period considered, over 890,000 new accounts were created to trade the meme coin.
On-chain assessment of SHIB’s network activity revealed that the opposite has occurred.
Data from IntoTheBlock showed that in the last week, the daily count of new addresses created to trade the Doge killer plummeted by 5%.
Due to this, the total number of addresses involved in SHIB transactions during the same period also saw an 18% dip.
Assessed on a year-to-date (YTD), new demand for SHIB has fallen by 19%. This was gleaned from its new adoption rate metric, which has experienced significant swings since the year started.
Once the number of active addresses trading an asset plunges, there is a corresponding decline in the total count of transactions.
Data from IntoTheBlock showed a 17% decrease in SHIB’s daily transactions in the last week alone. On a YTD basis, it has fallen by 21%.
A significant correlation exists between an asset’s network activity and its price performance. SHIB’s low demand since the year began has negatively impacted its price.
According to data from CoinMarketCap, the alt’s value has dropped by 10% since the 1st of January.
SHIB’s Open Interest sees growth
Following an extended period of decline in January, SHIB’s Futures Open Interest has rebounded and trended upward since the new month began.
Source: Coinglass
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
According to data from Coinglass, the coin’s Futures Open Interest has risen by 38% since the 29th of January. At press time, SHIB’s Open Interest totaled $22.06 million.
When an asset’s Open Interest witnesses this kind of resurgence, it suggests that traders have begun opening new trading positions.
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