A stunning exodus of token holders from the high-profile Shiba Inu (SHIB) cryptocurrency project has been occurring over the past 12 days, and no one seems to be talking about it. According to CoinMarketCap, SHIB has steadily lost holders every day since Mar. 16, 2022 totaling a decline of 63,901 users in less than two weeks. That’s after three months of significant gains in new investors.
From Dec. 21, 2021 to Mar. 15, 2022 Shiba Inu added 118,695 new users to hit an all-time high of 1,199,453 token holders. However, the right hand side of the chart below shows SHIB’s three month rolling average of asset holders, graphicly depicting the shocking slide in Shiba Inu owners over the past several days.
Despite the 118,695 new users over the past three months, the project has lost the equivalent of 54% of that number in a matter of days. This topline analysis did not reveal whether the holders who left were long- or short-term investors but if this trend continues it likely won’t matter.
That’s especially true when you consider there’s been so much positive news of late for Shiba Inu including:
- An 18% price increase over the past day and a 26% price pump over the past week at press time
- Developers working to launch SHIB’s own blockchain
- The introduction of a SHIB non-fungible token (NFT) collection
- The rollout of a SHIB decentralized exchange and companion cryptos
- Last week’s Twitterspace announcement of a dedicated “burn portal” for trillions of tokens to help reduce the maximum supply and try to boost the price of SHIB
- As well as the country of Turkey considering SHIB as a currency option to fight its hyperinflation
Despite this parade of positive news, it’s difficult to ignore the fact that 32,000 Shiba Inu users abandoned the crypto the evening before the Federal Reserve publicly announced its rate increase of 0.25% on Wednesday, Mar. 16. The Fed also announced that same day that it intends to hike rates six more times this year to slow record-breaking inflation levels.
Conventional wisdom suggests that as interest rates increase, investors move from high-risk, speculative investments like SHIB to safer options with higher return potential. We’ll have to watch this financial flight from Shiba Inu closely, because if it continues to lose users faster than it gains them – the future could be dark. And that’s due to the Fed, more than FUD.