- About 2.6 trillion SHIB tokens were sent into exchanges on the 1st of June
- Network Growth fell, suggesting that the price may face another correction
Shiba Inu [SHIB] started June in an unusual fashion as AMBCrypto observed a recent change that could leave holders rekt. According to our analysis using Glassnode, SHIB’s Exchange Net Position Change was positive.
Specifically, the metric was 2.60 trillion as of 1st June. Exchange Net Position Change tracks the supply of tokens held in supply wallets.
If the metric is positive, it means that a lot of tokens have been sent into exchanges. Most times, a consistent influx brings about selling pressure and causes prices to decrease.
No boost, only burst
On the other hand, a negative number suggests that more tokens were withdrawn from exchanges as opposed to deposits. In this instance, the price of a token could increase afterward.
For Shiba Inu, the net change was negative from March till mid-May. However, it was only in March that the price reaped the benefits of the flow.
Source: Glassnode
During that period SHIB’s price hit $0.000035. But April and May were not so rosy for the token as the price moved sideways for most of it.
With the recent surge in exchange supply, holders of the Shiba Inu token might be left with no other option than to expect a price decline.
At press time, SHIB’s value was $0.000024, representing a 6.49% decrease in the last 90 days. But before concluding that SHIB is destined for another decline, AMBCrypto analyzed other parts of the ecosystem.
Demand continues to wane
One of the metrics evaluated was Shiba Inu’s Network Growth. Network Growth is the number of new addresses interacting with a token for the first time.
This metric is usually taken as a sign of adoption or traction to the network. According to Santiment, the Network Growth had fallen from the height it reached on 29th May.
Therefore, this decline reinforced the assertion that SHIB could be set for a plunge. If this is the case, the price of the cryptocurrency could fall as low as $0.000020.
However, one should not write off a bounce. For that to happen, demand for SHIB has to be spectacular. Should this be the case, the value of the token might rally to $0.000030.
Source: Santiment
In addition, AMBCrypto checked the one-day circulation. An increase in circulation indicates that market participants are engaging more tokens in transactions.
On the other hand, a decline suggests a decrease in the number of tokens used.
Realistic or not, here’s SHIB’s market cap in DOGE terms
As of this writing, Shiba Inu’s one-day circulation was 965.89 billion, indicating that the token was not part of the top memecoins being shilled in the market.
Hence, SHIB might not attract as much liquidity as other top memecoins. From a price perspective, this spells a terrible fate all month long unless things change for the better.