Dogecoin, Shiba Inu on-chain metrics support price decline as meme tokens bleed

Dogecoin (DOGE) and Shiba Inu (SHIB) on-chain metrics signal a loss of relevance among market participants, suggesting that both meme coins could extend recent losses. Active addresses and volume have declined in June, signaling lower levels of activity among traders. 

On-chain metrics support correction in DOGE, SHIB

Data from crypto intelligence tracker Santiment shows a steady decrease in Dogecoin’s active addresses and volume in June. The two metrics help identify an asset’s relevance and demand among market participants. 

Shrinking volume and declining active addresses are typical of an asset suffering a price correction. 

Dogecoin active addresses and volume vs. price

While Dogecoin is the largest meme coin by market cap, Shiba Inu ranks second. SHIB has noted a rise in the token’s supply on exchanges in June. Typically, a higher volume of tokens on exchanges denotes higher selling pressure on SHIB as it becomes more likely for traders to sell their holdings. If investors finally opt to do so in large volumes, it could contribute to a further price correction. 

SHIB’s supply on exchanges has hit its highest level in nearly six months, as seen in the Santiment chart below. Combined with an insignificant increase in volume, it supports a bearish thesis. 

SHIB supply on exchanges vs. price

The prices of both dog-themed meme coins have declined nearly 3% on Tuesday. 

Looking at the past seven days, Dogecoin and Shiba Inu have experienced even sharper losses. DOGE is down more than 10% to trade at $0.1417 at the time of writing, while SHIB loses 9% to $0.00002235. Both tokens’ prices have been dragged by the broader crypto market correction.