Recently, crypto analytics firm Santiment published a research report in which it said that highly popular dog meme cryptocurrency Shiba Inu (SHIB) could be considered a “blue chip” among Ethereum-powered altcoins.
Santiment processes “massive amounts of information from a plurality of reliable sources”, and then puts it in its “growing stream of signals and datafeeds”, which include:
- “Price and Volume data”
- “Development (GitHub) Activity data”
- “On-chain data”
- “Holder behavior activity”
- “Social media activity”
- “Crowd sentiment data”
In a blog post published on Tuesday (November 16), Santiment talked about the recent “dump” in the crypto market, and focused on the ERC-20 token segment to find out how they had been affected by the sell-off, in particular “looking for ‘pain markers’ in exchange inflow, deposits, age consumed, network profit/loss and whales behaviour.”
The five blue-chip ERC-20 tokens that this research looked at were $SHIB, $YFI, $UNI, $AAVE, and $LINK. However, in this article, we focus on what Santiment had to say about $SHIB with respect to each of the aforementioned “pain markers”.
“A declining trend of SHIB being deposited to exchanges is indicating that traders are not afraid of Shiba going down. They are not going to send tokens to exchanges to sell.“
“Same here, no worries or minimal worries visible.” (with the exception of $YFI)
Network Profit Loss
“Interesting that the picture here is completely the same again: almost no panic sells except in YFI“
“All five tokens do not have any significant outliers here. Likely no huge old bags moved or sold.“
Here Santiment looked at “supply distribution by balance of addresses holding from around $500K to $50M worth of tokens” and found nothing unusual except in the case of $LINK (which was s”howing a downtrend in whales balances last day”).
These findings lead Santiment to the following conclusion:
“We do not see many signs of panic or sell offs within selected ERC-20 tokens. People don’t seem to worry about the dump. It makes us suggest we might see a further correction until holders confidence wipes off.“