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Shiba Inu witnesses a fairly high new adoption rate despite the ongoing market uncertainty that has restrained its price to the $0.000023 level.
With the broader market facing a roadblock to the latest breakout attempt, Shiba Inu failed to breach the resistance at the 20-day EMA ($0.00002453). Such a breach would have helped flip short-term momentum from bearish to bullish, effectively bolstering investor confidence.
Shiba Inu’s New Adoption Rate Remains High
Interestingly, market participants have continued to troop into the Shiba Inu market despite the prevalent short-term bearish momentum. This trend is demonstrated in full scope by the New Adoption Rate metric provided by blockchain intelligence resource IntoTheBlock (ITB).
The New Adoption Rate metric starts by pinpointing all the active Shiba Inu addresses involved in transactions on a particular day. It then calculates the percentage of new addresses among this group that are carrying out their first transactions within that same timeframe.
A high rate suggests that Shiba Inu is witnessing an influx of new market participants. On-chain data confirms that this metric has remained above 30% since April 22 despite the persistent turbulence that has plagued the Shiba Inu market.
The New Adoption Rate maintained a position above 30% from January of this year as SHIB showed signs of a push above $0.00001 at the time. However, the metric collapsed to the yearly bottom of 21.04% on Feb. 27, right before SHIB recorded the meteoric surge that saw it spike 372% to $0.000045 on March 5.
Interestingly, the indicator immediately picked up, suggesting an influx of new investors looking to ride on the late February rally. Since then, it has maintained an average of 35% as new market participants enter the scene, possibly to procure more tokens at discounted prices.
Gradual Rise in Small SHIB Addresses
Supporting this notion is the gradual increase in the number of small Shiba Inu addresses. Santiment confirms that addresses holding between 10 and 10 million Shiba Inu tokens have seen an impressive increase since March 5, the day Shiba Inu clinched $0.000045.
This trend suggests a renewal of confidence among investors, as SHIB demonstrated its ability to record massive surges. Notably, Shiba Inu has seen an addition of 24,076 addresses holding between 10 and 1 million tokens. Those with 1 million to 10 million tokens have surged by 14,140 since March 5 despite a drop on April 20.
Moreover, the Address Birth-Death Ratio from ITB also confirms that Shiba Inu has been seeing an increase in new users compared to old users who have not transacted for over a year. This metric hovered between 0.1% and 0.06% from January to February. However, it increased to a two-year high of 1.15% on March 5.
Since then, it has averaged at 0.15% following a sharp drop on March 6, suggesting a healthy inflow of new users. Meanwhile, Shiba Inu is currently changing hands at $0.00002377 amid a 0.50% drop this morning. Nonetheless, it retains a 6.16% increase this month.