Dogecoin and Shiba Inu are currently experiencing bearish sentiment due to the downtrend in the crypto market. The chain’s metrics also highlight the current sentiment that market participants are choosing to stay on the sidelines in this bearish trend.
On-chain metrics show bearish sentiment against Dogecoin and Shiba Inu
Sanitary information shows that the variance of Dogecoin’s daily active addresses (DAA) has dropped to -49%, indicating weak demand in meme coin ecosystem even while the price is still going. This is DOGE’s two-month low and comes on the back of its recent decline from the $0.10 psychological level.
In addition, Active daily addresses continue to vibrate on the Dogecoin network. Data from Santiment shows that DAA on the network dropped from 87,727 on January 31st to 38,696 on February 28th. The total number of active addresses in the last seven days is less than 300,000, which also indicates the low demand for the meme coin at the moment.
Like Dogecoin, Shiba Inu is also facing weaker demand amid falling prices. Sentiment data shows that DAA’s Price Divergence has fallen to -29%, the lowest level this year. This is especially true with it Reduction of SHIB reached its lowest level this year, with the meme coin now down 25% year-to-date (YTD).
Daily Active Shiba Inu Addresses have also remained flat since the start of the year, indicating that investors are turning away from investing in the second largest meme coin by market cap. For context, SHIB’s DAA on March 1 was just 1,984, down from a multi-month high of 377,000 recorded last October. Since the beginning of this year, daily active addresses have remained below 10,000.
It should be noted that Dogecoin and Shiba Inu remain at risk of further declines because of tensions between USA and Iran to expand Further declines in these meme coins will likely lead to a decline in these chain metrics as market participants remain on the sidelines in this uncertainty.
Derivative metrics are in the red when traders are sitting on the sidelines
The Dogecoin and Shiba Inu derivatives metrics are also in the red as crypto traders are sitting on the side of the current market selloff. CoinGlass data shows that trading volume of DOGE derivatives fell by more than 34% to $2.36 billion. Public interest has waned fell more than 9% to $907 million, while options trading volume fell 31%. The long/short ratio is less than 1, indicating that most traders are currently shorting DOGE.
Similarly, Shiba Inu derived metrics shows that sellers are currently dominating the market as bulls are cautious amid market uncertainty. CoinGlass data shows SHIB’s derivatives trading volume fell 28% to $132 million, while open interest fell to $54 million.
Featured image from Pngtree, chart from Tradingview.com
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