Shiba Inu drops nearly 5% post fourth birthday celebration
- Shiba Inu announces 150 million percent gains since its launch four years ago.
- Shiba Inu supply on exchanges is down 5% since June, reducing the selling pressure on SHIB.
- SHIB suffers nearly 5% correction on Friday, trades at $0.000015 at the time of writing.
Shiba Inu (SHIB) celebrates its fourth birthday. The dog-themed meme coin is the second-largest asset in the category, with a market capitalization of $8.94 billion. SHIB erased nearly 5% of its value on Friday, down to $0.000015 on August 1.
Shiba Inu on-chain metrics show hope for recovery
Shiba Inu supply on exchanges dropped by over 5% in the past two months. The drop in supply between June and August reduces the selling pressure on SHIB, since the volume of tokens in exchange wallets is low.
 [01.25.28, 02 Aug, 2024]-638581684541203986.png)
Shiba Inu supply on exchanges vs. price
In the last two days, SHIB holders have realized over $2.3 million in losses. The Network Realized Profit/Loss metric (NPL) measures the net profit/loss of each token traded on a given day. The metric shows over $2.3 million in losses realized by SHIB holders.
Traders need to keep an eye on this metric as consistent realization of losses by traders could signal a capitulation, and this is typically followed by a recovery in the asset.
 [01.41.19, 02 Aug, 2024]-638581685425547674.png)
Network realized profit/loss
Shiba Inu officially announced its fourth birthday celebration on August 1.
We’ve turned 4! From humble beginnings, we've soared 150 MILLION PERCENT! Our #ShibArmy is UNSTOPPABLE with 3.8 MILLION+ strong!
— Shib (@Shibtoken) August 1, 2024
We've built a thriving ecosystem with #ShibSwap, #Shibarium,multiple tokens, NFTs, and a metaverse on the horizon!
Bringing Ryoshi's… pic.twitter.com/iiffjmKiIk
Shiba Inu trades at $0.000015 at the time of writing.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
