Popular market commentators highlighted the increasing number of wallets holding Shiba Inu, highlighting continued user interest in the token.
Despite the increased market volatility over the past few weeks, the number of wallets holding SHIB continues to grow slowly. In a recent post on X, community figure Etherscan_SHIB pointed out that the number of Shiba Inu on-chain holders is increasing.
Citing data from Etherscan, the expert revealed that the number of addresses holding SHIB increased by 0.01% in the past day to 1,546,558 (1.54 million). As of this writing, this number has further increased to 1,546,786 (1.54 million), representing a daily increase of 0.003%.
Shiba Inu drops below $0.00001
What is noteworthy is that the number of Shiba Inu addresses is increasing while the price of SHIB continues to fall amid the overall market downturn. The Shiba Inu has repeatedly fallen below $0.00001 since October 10th and is struggling to recover.
At the time of writing, SHIB's trading price was $0.000009951, and its market capitalization was $5.86 billion. The token is down 47.52% over the past year, 52.9% year-to-date (YTD), and 23.28% over the past 30 days. The daily and weekly prices also fell by 2.47% and 8.34%, respectively.
The steady increase in on-chain holders indicates renewed confidence in Shiba Inu's long-term potential, but uncertainty remains as to whether SHIB will be able to regain its former glory at a time when its price has soared by hundreds of percent in a matter of days.
Factors hindering potential upside
One of the biggest challenges hindering SHIB's growth is its huge token supply. Despite the ongoing token burn, Shiba Inu still has a large circulating supply of approximately 589 trillion tokens. Critics argue that a supply of this size could hinder future price increases.
With a circulating supply of 589 trillion tokens, Shiba Inu would need a market cap of $52.09 billion to reach its all-time high (ATH) of $0.00008845.
Although this valuation is modest compared to those of more established tokens, many believe that SHIB does not have the momentum to reach that milestone at this time.
Team leadership styles that hinder organizational adoption
Some community members believe that Shiba Inu's anonymous leadership is blocking adoptions at the facility. The identity of the project's core team has not been disclosed, a feature previously praised for promoting decentralization in SHIB's early days.
But as Shiba Inu has evolved into a multibillion-dollar ecosystem, many have argued that greater transparency and accountability are key to attracting institutional investors.
Lack of new utilities
The Shiba Inu has made great strides in the deployment of utility projects, particularly the Shibarium, to increase its popularity. However, these projects have not achieved the desired results.
To reignite momentum and pave the way for big gains, teams need to introduce more real-world use cases.
Intensifying competition
Shiba Inu dogs are currently facing fierce competition from rivals. These projects are rapidly evolving and attracting investor attention.
As a result, SHIB must continue to innovate to remain relevant. In particular, teams should prioritize completing existing initiatives, such as NFT Marketplace and Metaverse, before launching new initiatives.
Team support for other projects
Some team members have previously expressed support for other crypto projects, diverting investor focus and funds away from SHIB. Such actions harm Shiba Inu's growth prospects and weaken investor confidence.
To ensure long-term stability and growth, teams must demonstrate stronger commitment to the Shiba Inu ecosystem and align their efforts towards its continued success.
Community momentum is weak
Despite the increase in on-chain holders, the broader community momentum that once animated SHIB gatherings has sharply declined.
Investors have become less active in promoting SHIB and attracting new users on social media, while many once-influential supporters have shifted their focus to competing projects. For the Shiba Inu to regain its former strength, this lost community energy and enthusiasm must be revived.
