Bitrabo Editorial
According to a recent study by Santiment, a platform specializing in on-chain analytics, the market sentiment surrounding Dogecoin (DOGE) and Shiba Inu (SHIB) suggests a potential rebound for these popular meme coins.
Bearish Outlook from Shiba Inu Investors
Santiment’s findings indicate that investors in Shiba Inu are currently feeling negative about the asset. This pessimism is reflected in the sharply reduced social engagement around Shiba Inu since late July, pointing to a growing bearish sentiment over the year.
The data further shows that many small retail traders are selling off their SHIB holdings, causing an environment of helplessness among Shiba Inu investors. Statistics from IntoTheBlock substantiate this, revealing a lack of bullish enthusiasm among smaller investors, while substantial holders (or whales) hold nearly 60% of SHIB’s total circulation.
Santiment further reports that contrary to Dogecoin, Shiba Inu’s retail traders are experiencing significant relief. The data illustrates that wallets containing below 1 billion SHIB coins now have the lowest percentage of supply since November 2022. This suggests an increase in fear, uncertainty, and doubt (FUD) within the Shiba Inu community, as whales control the majority of the holdings.
Moreover, Shiba Inu’s lackluster performance this year has contributed to this bearish perspective. Santiment pointed out that it has fared worse than Dogecoin throughout 2024, with 30-day average returns sitting at approximately -1.1% and long-term returns plummeting to -31.7%. However, a potential shift in sentiment could occur if Bitcoin experiences a bullish trend, as Shiba Inu has shown to move positively in correlation with Bitcoin’s performance.
Indecision Among Dogecoin Traders
In contrast, Dogecoin traders have exhibited uncertainty regarding their strategies this year. Data indicates that wallets holding under 1 million DOGE have maintained a consistent 11.8% share of the total supply since the start of the year. There’s no clear indication of growing demand as these small traders are not showing signs of enthusiasm to accumulate more DOGE.
Despite the surge of interest in meme coins like Tron in August benefiting Dogecoin, its price did not reflect an equivalent upward trend. The engagement ratio for Dogecoin discussions compared to overall crypto conversations diminished to 1.28%. Currently, the market sentiment is at a neutral level; Santiment notes this is indicative of the FOMO (fear of missing out) subsiding rapidly. If impatience and FUD commence, it might signal an opportunity for a market reversal.
