The frenzy surrounding meme coins that took over the crypto market earlier in 2025 seems to have died down, and Shiba Inu (SHIB) is feeling the impact of this shift.
Amid a surge in buying activity at the beginning of the year, demand for SHIB has sharply decreased, with the number of new addresses hitting a new low.
Shiba Inu Traders Pulling Back
A recent analysis of SHIB's on-chain performance by BeInCrypto highlights a significant drop in the daily number of new addresses engaging in SHIB trades. Data from Santiment reveals a decline of 62% since January 19.
New Address Count for SHIB. Source: Santiment
For context, only 1,814 new addresses were generated on Sunday, marking the lowest daily count of the year. This decline comes as interest in meme coin speculation wanes across the market, leaving SHIB struggling to sustain the buzz it initially had.
Additionally, the number of active addresses participating in SHIB trades has also seen a sharp dip. As the excitement from the TRUMP and MELANIA-driven market surge subsided, the active addresses trading SHIB followed suit.
Active Address Count for SHIB. Source: Santiment
To provide perspective, on February 9, 4,690 active wallet addresses were involved in SHIB transactions, signifying a 53% decrease from the year's peak of 9,928 active addresses on January 19.
A decrease in daily active addresses and new demand for an asset indicates waning interest and involvement, leading to decreased trading volumes and growing bearish sentiment among investors.
The dwindling network activity for SHIB underscores a softening market, making the asset more vulnerable to price fluctuations and volatility.
SHIB Price Forecast: Struggling to Break Key Trend Line
Looking at the daily chart, SHIB's price remains below the descending trend line that has persisted since December 9. This pattern is typically bearish, indicating a downward trend as the asset forms lower highs over time.
SHIB Price Analysis. Source: TradingView
This trend suggests that the SHIB market is under selling pressure, foreseeing a potential further drop in the coin's value. Should this trend persist, the price could dip to $0.000014.
However, in a scenario where renewed demand emerges for the leading meme coin, it could break above the descending trend line and reach $0.000018.
The decline in network activity and trading volume for SHIB should be monitored closely as it could impact its price movements and overall market sentiment.
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