Despite market uncertainty, Shiba Inu has experienced a significant increase in new adoptions, although its price remains at the $0.000023 level. The broader market has faced obstacles in its attempt to break out, preventing Shiba Inu from surpassing the resistance at the 20-day EMA ($0.00002453). This breakthrough would have shifted short-term momentum from bearish to bullish, providing a boost to investor confidence.
Interestingly, despite the prevailing bearish momentum, market participants have continued to enter the Shiba Inu market. This trend is evident in the New Adoption Rate metric provided by blockchain intelligence resource IntoTheBlock (ITB). This metric identifies all active Shiba Inu addresses involved in transactions on a given day and calculates the percentage of new addresses among them that are conducting their first transactions within the same timeframe. A high rate indicates an influx of new market participants. On-chain data confirms that this metric has remained above 30% since April 22, despite the turbulence in the Shiba Inu market.
The New Adoption Rate has consistently stayed above 30% since January, when SHIB showed signs of pushing above $0.00001. However, on February 27, the metric dropped to a yearly low of 21.04%, just before SHIB experienced a meteoric surge, spiking 372% to $0.000045 on March 5.
Interestingly, the indicator immediately rebounded, suggesting an influx of new investors seeking to capitalize on the late February rally. Since then, it has maintained an average of 35% as new market participants enter the scene, likely aiming to acquire more tokens at discounted prices.
This notion is supported by the gradual increase in the number of small Shiba Inu addresses. According to Santiment, addresses holding between 10 and 10 million Shiba Inu tokens have seen a significant rise since March 5, when the price reached $0.000045. This trend indicates renewed investor confidence, as SHIB has demonstrated its ability to experience substantial surges. Notably, there has been an addition of 24,076 addresses holding between 10 and 1 million tokens, and 14,140 addresses holding 1 million to 10 million tokens since March 5, despite a drop on April 20.
Furthermore, the Address Birth-Death Ratio from ITB confirms that Shiba Inu has been attracting more new users compared to old users who have not transacted for over a year. This metric ranged between 0.1% and 0.06% from January to February but reached a two-year high of 1.15% on March 5. Since then, it has averaged at 0.15%, indicating a healthy inflow of new users. Currently, Shiba Inu is trading at $0.00002377, experiencing a 0.50% drop this morning but still showing a 6.16% increase this month.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.