- Shiba Inu surpassed Avalanche by global market cap.
- Both altcoins still stand slightly below $4 billion.
- On-chain signals reveal two key differences.
The popular Japanese guard dog-themed memecoin Shiba Inu (SHIB) climbed the global crypto charts on Friday. SHIB inked 1.3% in the latest rebound effort, still licking its wounds from yesterday’s USDT repeg rumors and last week’s SEC case against Binance, which sent shockwaves across the industry.
Bouncing back from the weekly low of $0.00000591, Shiba Inu reclaimed the #18 spot by global market cap, surpassing Avalanche (AVAX). However, Shiba Inu’s market cap still falls below $4 billion, which signals that $SHIB lost more than half of the initial market capitalization during the first bull cycle of 2023. Shiba Inu’s global market cap was worth $8.69 billion on February 23rd, 2023.
Shiba Inu to Slide Out the TOP 20?
Even though Shiba Inu successfully reclaimed the 18th position, the on-chain metrics unravel a scenario that might see it sliding below the TOP 20. SHIB’s on-chain metrics unveil a 3:0 bearish vs. bullish ratio, with a significant decline in large transactions and holders making a profit at this price.
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According to blockchain data analytics platform IntoTheBlock, only 7% of current SHIB holders are making a profit – last week’s developments lowered this metric by 6.48%. However, one of the worst metrics for Shiba Inu is related to exchanges – a steep 16.53% decline in bid-ask volume pinpoints the lack of demand for $SHIB on major exchanges.
While this could be due to Binance’s SEC case, the on-chain signals independent from crypto exchanges are also heavily on the bearish side. For instance, net network growth has dropped by 0.49%, while the concentration of whales remains neutral. At press time, SHIB trades at $0.00000673 with a 16.4% weekly deficit, according to CoinGecko.
On the other hand, Avalanche (AVAX) presents two bullish on-chain signs in concentration and net network growth. Despite the drastic price plunge, the Proof-of-Stake (PoS) blockchain grew by 1.81% in this metric due to increased network activity. AVAX trades at $11.46 at press time, with a 19.8% deficit in the last seven days.
On the Flipside
- While the 7% In The Money on-chain signal is often the cause of uncertainty and fear among Shiba Inu’s holders, AVAX performs far worse in this category, with less than 1% of holders making a profit at the current market price.
Why This Matters
On-chain signals often determine the sentiment of the whole market.
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