The meme coin remains stuck in a heavy downtrend caused by the prolonged bear market and other negative factors.

Despite the grim conditions, Shiba Inu’s holders base continues to rise, recently reaching a new all-time high.

The New Record

The total number of SHIB wallets has been rising slowly recently, but at the beginning of the month there was a sharp jump. According to the X account BSCN, the meme coin saw an explosive jump of almost 75,000 new holders between July 5 and July 6 – far above its typical daily growth.

It remains unclear why the figure soared so sharply, as some speculate there might have been a technical glitch. In any case, the total number currently stands at 1,676,535, which is a new all-time high.

The growing figure contrasts with the plummeting price of Shiba Inu. As of this writing, it trades at around $0.0000042, reflecting a 15% plunge on a monthly scale and a staggering 95% crash from the historic peak witnessed in 2021.

SHIB remains the second-largest meme coin, but only thanks to the double-digit collapse MemeCore (M) recently experienced. The market capitalization of the self-proclaimed Dogecoin killer has tumbled below $2.5 billion, making it the 36th-biggest cryptocurrency.

Further Slump Incoming?

The rising number of SHIB wallets is perhaps the only real glimmer of optimism for Shiba Inu lately. Its burning mechanism, which saw a major resurgence last week, has once again slowed, while Shibarium’s activity has fallen to near-idle levels.

The layer-2 scaling solution, designed to enhance Shiba Inu’s ecosystem by boosting speed, lowering transaction fees, and improving scalability, initially processed millions of transactions on a daily basis. Over the past months (especially after Shibarium’s exploit last year), those have tumbled to mere thousands and hundreds.

These negative factors, combined with the fading interest in the meme coin, suggest that bulls might have to suffer more pain in the near future. According to BSCN, SHIB’s daily trading volume was close to $700 million a year ago, but today (July 13) it is struggling to reach $50 million.

The sentiment among analysts and industry participants is also particularly negative. Recently, popular trader James Wynn described SHIB as “old, dead, and boring,” suggesting it may not recover for another 5-10 years until nostalgia potentially brings it back.

Source: CryptoPotato