Shiba Inu has recently exhibited some perplexing behavior in its on-chain metrics. Despite experiencing a considerable price spike a few weeks ago, almost all of the on-chain metrics for SHIB are currently losing momentum. This phenomenon is rather unusual for Shiba Inu, known for its high volatility and frequent price fluctuations.
At press time, Shiba Inu is trading at $0.00001, witnessing a 2% price drop in the last 24 hours. This decline is in stark contrast to the recent uptrend that saw a surge in transactions and trading volume.
One possible explanation for this mysterious pattern could be related to market sentiment and investor behavior. With the Ethereum unlock around the corner, investors and traders might take a calmer approach to avoid issues with the spike of volatility on the market.
As the cryptocurrency market is highly influenced by emotions and perceptions, a change in sentiment toward Shiba Inu or the broader market could be contributing to this decline in on-chain metrics. Additionally, it is worth noting that the meme-based nature of SHIB makes it more susceptible to fluctuations driven by social media trends and influencers, which can lead to abrupt changes in market dynamics.
Another factor that might be impacting Shiba Inu's on-chain metrics is the recent focus on other meme-based cryptocurrencies and projects that show higher volatility and bring more potential returns. As new tokens and platforms continue to emerge, the attention of investors may be shifting away from SHIB, leading to a decline in its on-chain metrics.
However, the meme asset might recover soon enough, making SHIB act as it did before and return to a path of a high volatility.