Shiba Inu is currently navigating a difficult phase, mirroring the broader struggles in the cryptocurrency market. Recent data from Santiment reveals that Shiba Inu has underperformed compared to other meme coins like Dogecoin. Its 30-day average trading returns have slipped by -1.1%, and long-term returns have dropped by -31.7%. Santiment analysts believe that while Shiba Inu is facing these challenges, it may be poised for gains once Bitcoin stabilizes and altcoins start recovering.

Small Wallet Holders Exit

The report also points out that Shiba Inu’s retail traders are leaving the market. Wallets holding less than 1 billion SHIB now account for a smaller percentage of the total supply, marking the lowest level since November 2022. This trend suggests that a significant number of smaller holders have sold off their tokens. 

Related article: Momentum Builds for Shiba Inu: Is the $0.000014 Resistance Next?

In contrast, large wallets—holding over 1 billion SHIB—now control the majority of the supply. Santiment links this shift to increasing fear, uncertainty, and doubt (FUD) surrounding the SHIB ecosystem.

_{^{SHIB Wallet Holding Santiment}}

Declining Social Engagement and Sentiment

Shiba Inu has also experienced a decline in social activity throughout 2024, with discussions about the token hitting new lows since late July. This reduction in chatter indicates growing frustration among traders, particularly as small retail participants continue to exit. Despite these challenges, experts remain divided on the token’s future. Some believe SHIB could still see gains, especially when compared to Dogecoin. 

Related article: Shiba Inu’s Shibarium Nears Major Milestones: Is a SHIB Price Surge Coming?

Other meme coins like Dogecoin and PEPE have shown mixed results. Short-term Dogecoin traders are seeing modest profits, but long-term holders face losses of -20.8%. Retail traders have remained cautious, and there has been little evidence of large-scale accumulation of DOGE this year. 

In contrast, PEPE, which has attracted newer traders, has increased its market cap by about 50% over the last five months, even amid the broader market downturn.