Shiba Inu (SHIB) Faces Growing FUD as Small Wallet Holders Exit

• Shiba Inu (SHIB) experiences a sharp decline in small wallet holders, signaling rising FUD.
• The meme coin’s trading volume lags behind other assets, including Litecoin (LTC).
• Despite current downturns, SHIB could recover if Bitcoin stabilizes and altcoin markets grow.

Shiba Inu (SHIB) is grappling with heightened Fear, Uncertainty, and Doubt (FUD), according to recent insights from the analytics platform Santiment. The platform has noted a significant drop in the percentage of SHIB supply held by wallets with less than one billion tokens. This decrease marks the lowest level since November 2022, indicating a shift in market sentiment and a consolidation of holdings among large investors.

Shift in Investor Dynamics

Currently, large SHIB whales control the majority of the token supply, reflecting a high level of centralization within the ecosystem. This trend suggests that retail investors are retreating from the asset, leading to a surge in FUD. The proportion of small wallets has sharply declined, which could signal growing concern and uncertainty among the broader investor base.

Moreover, Shiba Inu’s presence on social media has dwindled significantly over the past month. The decrease in social media engagement aligns with the observed drop in retail investor activity. Furthermore, SHIB’s trading volume is trailing behind other meme cryptocurrencies and even more established assets like Litecoin (LTC). This lack of trading momentum underscores the current bearish sentiment surrounding the token.

Potential for Future Recovery

Despite the prevailing negative sentiment, Santiment suggests that Shiba Inu might see a positive turn around if Bitcoin’s price stabilizes and broader altcoin markets experience growth. Currently, SHIB’s long-term returns stand at nearly -32%, positioning it as a less favorable investment compared to Dogecoin (DOGE). The report highlights that factors such as a shift towards self-custody and an increased burn rate of SHIB tokens could potentially drive future price recovery.

Dogecoin Remains Stable

In contrast to Shiba Inu, Dogecoin (DOGE) does not exhibit signs of fear or panic. Santiment reports that the sentiment around Dogecoin remains neutral, with retail investors showing indecision regarding their holdings. This stability in sentiment contrasts sharply with the growing FUD impacting Shiba Inu.