- SHIB’s new and active addresses grew significantly from the last quarter.
- The token might fall short in Q3 unless there is a change in on-chain activity.
Shiba Inu [SHIB] concluded the second quarter (Q2) of the year with notable momentum and market activity. Despite facing ups and downs in the volatile crypto landscape, IntoTheBlock revealed that SHIB’s daily new addresses increased. In fact, it was a 357% increase from the lows of the previous quarter.
Quarterly Update: #SHIB had a strong ending to Q2, with new addresses showing positive signs of growth. Daily new addresses reached over 4k on June 27th, up 357% from it 877 quarterly low on May 21st. pic.twitter.com/jbhlR8OUvl
— IntoTheBlock (@intotheblock) July 3, 2023
Read Shiba Inu’s [SHIB] Price Prediction 2023-2024
Recall that, in Q1, SHIB’s network activity was not exactly impressive even as doubts surfaced about the long-term relevance of the cryptocurrency. However, the surge in new addresses implied that the meme had attracted adoption.
Bumpy roads are now smooth
As Q3 begins, many may begin to wonder what lies ahead for Shiba Inu and whether its positive momentum will continue. Well, according to Santiment, SHIB’s weighted sentiment has been increasing since the beginning of June.
While the metric remains in the negative region, the rise to -0.821 suggests that market participants were increasingly becoming confident in SHIB’s performance, especially from the unique social comments.
Consequently, this affected the 30-day active addresses. At press time, active addresses on the Shiba Inu network had grown to 162,000. And this growth also began around the same period the broader sentiment changed.
Typically, active addresses show the number of unique addresses that have participated in transacting an asset within a specific period. Thus, this implies that speculation and interaction with the token improved.
Still a market top for SHIB?
When it comes to the Network Value to Transaction Signal (NVTS), Glassnode showed that the metric had spiked beyond 162.
For context, the NVTS uses a 90-day moving average of the daily transaction volume in the denominator instead of the raw daily transaction volume. This uptrend indicates that investors were pricing SHIB at a premium while the market cap outpaced the transaction volume.
Such states often coincide with market tops, depending on the established market directions. Therefore, it is likely that SHIB’s short-term trend might remain underwhelming unless increased demand and activity change the dynamics.
However, Anthony Cerullo was of the opinion that SHIB’s mediocre outlook would only last a while. Speaking to AMBCrypto, the Chief Communications Officer at AI-powered CeDeFi platform Walbi said that SHIB burn and Shibarium could have a positive effect on the token.
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Although he admitted that SHIB’s 2% Week-To-Date (WTD) increase was a glaring underperformance, he also mentioned that,
“The growth tendencies of Shiba Inu are also hinged on its burn program which introduces the element of deflation as well as the introduction of products like Tangem-backed hardware wallets that will help secure tokens within its ecosystem.”