Shiba Inu and its extremely high onchain activity

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Santrends
Oct 5, 2021

Assets covered: Shiba Inu (SHIB)

Metrics used: Exchange Outflow, Transaction Volume, Active Addresses, Active Deposits, Exchange Inflow, Network Realized Profit/Loss, Whale Transaction Count

Charts: https://app.santiment.net/s/kjwrYX-m



Shiba Inu has skyrocketed today (+70%!), lots of shill in social media detected.

Source: Social Trends

What's happening to SHIB from onchain data perspective?



There are news circulating today saying that a few large whale buys preceded the pump.

We can check it.


First, what's the exchange outflow for SHIBA?

Source: Sanbase

Yes, it's high. But not record high at all, we've seen larger purchases before. Though we have to admit that these levels of exchange outflow are generally good for a coin.


Next, transaction volume. Are the moves from the news really outstanding?

Source: Sanbase

Well, nothing special at all in Shiba transaction volumes.

Yes, there was some activity in SHIB similar to what news are saying, but hardly meaningful for a token in fact.



Active Addresses

To be fair 4500 addresses a day at its lowest is crazy high. This coin is definitely not dead. We don't know who's using this coin and for what purposes. We could have thought for a while that it was sort of a fake network activity, but it never disappeared. Never dropped to 100-200 addresses a day. As ridiculous as it sounds there is at least some fundamental justification for the rally.


Even more, Shiba is currently in top 5 most active coins on Ethereum blockchain. See a screener for yourself:

There's no deny that some are still using this coin. What for? We have no idea.



Active Deposits

Yellow flags starting here. Extremely high active deposits are suggesting that it's probably a top forming.



Exchange Inflow

It's not very high, we would expect to see much higher. But still it's suggesting the same, probably a top forming.



Network Profit Loss

This chart is indicating that potential profit taking from Shiba is still relatively low, not a whole lot of profit taking yet. But it we zoom in...

... We would notice that higher price tops are built on lower profit taking spikes. This could potentially indicate that traders are becoming too confident on price action, like 'no need to sell, it's going to pump more'. Market tends to punish this sort of confidence.



Whale Transaction Count

This is another yellow flag for SHIB. Whale transactions are often coinciding with a local price top according to Santiment research "Whale Games: Backtesting the impact of large transfers on 1000+ coins".



Overall:

  • Shiba Inu active addresses are crazy high
  • Fair amount of top signals are visible
  • High risk, low reward


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.




SHIB
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Santrends
Oct 5, 2021

Thanks for reading!

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10

Assets from this insight

SHIBA INU logo

SHIBA INUSHIB

$ 0.000028

1.95%in last 7d

Conversations (10)

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K.J.LANPAUL

13 days ago

@santrends The Whale Transaction Count is High as you stated above but is there a chance that a part of those WTCs which are about 60 to be huge buys ?. Because the Exchange outflow is high.

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K.J.LANPAUL

13 days ago

But the NPL is declining which indicates the crowd wants shiba to pump more often signaling top supported by Active Deposits(can be a reason for high active addresses), decent Exchange Inflow and low volume to support the price

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K.J.LANPAUL

13 days ago

Can you give a clarity

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Santrends

Author
13 days ago

Not sure I understand

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K.J.LANPAUL

12 days ago

Is there a decent chance shiba forms a Top and tank ?

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Santrends

Author
12 days ago

Yes, a really decent chance

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Santrends

Author
13 days ago

Yes, can be

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<email hidden>

10 days ago

I think by calling it a meme coin is outdated at this point. It's ecosystem is growing with so much more functionability. Shibaswap, NFTS, huge coin exchange acceptance/listing, The deal with ShopNow to accept the coin on Shopify and other popular shopping carts (with a controlled coin burn schedule), and $BONE and $LEASH are proving that this product has legs beyond meme tokens. Just my opinion. If it was just a community-driven rise, I might think different.

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Santrends

Author
8 days ago

Makes sense, for sure. Shiba seems to be quite an ecosystem already

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<email hidden>

7 days ago

nasceu como um meme e vai surpreender muitos......