Benzinga - Shiba Inu token (CRYPTO: SHIB) on Wednesday, was one of the tokens accounting for the highest transaction fees.
What Happened: According to Santiment, an on-chain analytics platform, three key factors have contributed to the newfound optimism surrounding SHIB.
1. Network Growth Signals Robust Investor Engagement
Contrary to the prevailing market sentiments, the Santiment analysis highlights a notable increase in SHIB network growth. This indicates growing engagement and interest from investors, defying the notion that SHIB was limited to a speculative frenzy.
2. Unrealized Losses Amplify Potential Upside
Santiment’s on-chain metrics reveal that the majority of SHIB investors are currently experiencing unrealized losses. While this might initially appear discouraging, it actually suggests a high potential for future gains. When sentiment eventually turns bullish, the release of these unrealized losses could amplify SHIB’s upside movement, attracting further attention from traders and investors.
3. Decreasing SHIB Supply on Exchanges
Further reinforcing its analysis, Santiment highlights a decrease in the supply of SHIB on exchanges. This reduction in available tokens suggests growing confidence among SHIB holders who are increasingly opting to hold onto their positions rather than selling them off. As supply dwindles, a potential supply-demand imbalance may work in favor of SHIB, potentially leading to price appreciation.