Shiba Inu Activity Plunges 62% as New Addresses Hit 2024 Low

The initial excitement surrounding meme coins in early 2025 has considerably diminished, with Shiba Inu (SHIB) particularly affected by this trend.

In January, Shiba Inu witnessed a notable increase in buying activity. However, interest has waned considerably since then, leading to a substantial drop in the creation of new SHIB addresses, now at their lowest this year.

BeInCrypto's analysis highlights a significant decrease in SHIB's on-chain performance. Specifically, the number of new addresses engaging with the meme coin daily has fallen by 62% since January 19, according to data from Santiment.

On a recent Sunday, only 1,814 new addresses were created, marking the lowest daily figure this year. This decline follows a broader market retreat from meme coin speculation, posing challenges for SHIB to sustain its early-year momentum.

Moreover, daily active addresses trading SHIB have considerably decreased. As the market excitement spurred by TRUMP and MELANIA subsided, active participation in SHIB transactions similarly declined.

For example, only 4,690 wallet addresses were active in SHIB transactions on February 9, reflecting a 53% decrease from the peak of 9,928 on January 19.

Drops in daily active addresses and new demand typically signal waning interest and engagement, reducing trade volumes and fostering a bearish outlook among investors.

This downward trend in SHIB's network activity suggests a weakening market presence, heightening the asset's vulnerability to price fluctuations and volatility.

SHIB Price Forecast: Trading Below Key Resistance

On the daily charts, SHIB remains below a descending trend line it has been trading under since December 9, indicating a persistent bearish trend as prices form lower highs.

This pattern implies that selling pressure predominates in the SHIB market, likely continuing to push the coin's value downward. Prices may fall to $0.000014 if current trends persist.

However, should there be a resurgence in demand for leading meme coins, SHIB's value could exceed the descending trend line, potentially reaching $0.000018.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.