The ongoing crypto market volatility has significantly impacted meme coins like Shiba Inu (SHIB), which recorded unprecedented growth in 2021. Despite the depressed markets, a section of SHIB investors are potentially betting on the asset to rally by increasingly accumulating the coin ignoring the current market conditions.
In particular, as of September 23, SHIB had 1,226,030 holding addresses, adding about 35,834 new holders within three months. The added holders represent a growth of about 3% from the 1,190,196 registered on June 27, according to CoinMarketCap data.
From the data, the number of SHIB holders was growing steadily from the end of June before experiencing a dip in early August.
SHIB’s high volatility
In the meantime, SHIB’s price trajectory continues to struggle in line with the broader crypto market. Notably, the asset is still attempting to regain the highs of 2021 when it increased in both value and popularity.
Over the three months, SHIB’s value has experienced highs and lows, but the price has majorly remained suppressed. Over the period, SHIB peaked on August 15, trading at $0.000017 and by press time, the coin was trading at $0.000011 with gains of almost 5% in the last 24 hours.
Interestingly, about 30% of SHIB investors have been holding the asset for over one year, according to the IntoTheBlock data. Generally, the investors have potentially refrained from selling despite the downturn. Such holders are fuelling a bullish sentiment among investors while attempting to rid SHIB as an asset for making quick profits.
Besides the new SHIB holders potentially betting on the coin to rally, the investors are likely attracted to the asset’s increasing utility. It is worth pointing out that interest in meme cryptocurrency faded potential due to criticism over lack of utility.
SHIB’s increasing utility
However, SHIB is increasingly recording use cases in sectors like payments while making inroads into the growing non-fungible token (NFTs) space. Indeed, the Shiba Inu ecosystem is advancing its SHIBOSHIS project, a collection of Shiba Inu NFTs that will allow holders to participate actively in NFT minting and trading, digital land acquisition, and VR gaming.
At the same time, SHIB is working on launching its gaming ecosystem, where NFT holders participate in metaverse gaming.
Similarly, SHIB’s momentum is also building from the massive burning of the token. For instance, on September 21, about 132 million Shiba Inu tokens were destroyed within 24 hours. Notably, since the community resorted to reducing SHIB’s supply, 410.38 trillion tokens have been burnt.
Amid an increase in the number of holders and SHIB network activity, interest in the token appears to be fading. The token has generally recorded less popularity, with data from Google Trends suggesting that over the past year, global searches for the keyword “Shiba Inu” dropped to the lowest point in over a year in July this year.
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