Shiba Inu or Dogecoin: One of these networks is in a fix

Lavina Daryanani
Source: Bitcoinist

Thursday started on a bearish note and the likes of Bitcoin and most top alts were trading in the red. The cumulative capitalization of all the assets of the crypto marker dunked by 3.11% over in just the past 24 hours and merely reflected a value of $1.24 trillion at press time.

Top meme coins like Dogecoin and Shiba Inu were no exceptions to the broader bearishness. In the same daily time frame, they had each lost 4-6% of their value. At press time the former was valued at $0.084, while the latter was priced at $0.00001161.

State of the Dogecoin and Shiba Inu network

Well, Dogecoin’s network activity has sort of taken a backseat of late. The number of active addresses on the network spiked to almost 0.8 million at the beginning of March. Post that, nevertheless, it deflated and has remained flat over the past few weeks. At press time this metric reflected a value under 60k, bringing to light the not-so-healthy state of the network activity.

Source: Messari

Shiba Inu, on the other hand, witnessed a substantial 3x bump in mid-May. Post that, it did deflate, but the curve was seen above its April average level and was pointing up north at the time of press. Thus, on an individual note, Shiba Inu has been able to cope fairly better than Doge on this front.

Source: ITB

Rubbing salt on Dogecoin’s wounds

Well, a couple of other network-related factors were seen painting a bearish picture for Dogecoin. Consider this—in terms of the most active chains, Dogecoin had slipped on the rankings. At press time, it was placed 9th—when compared to 6th a few weeks back—and transactions worth only $145 million had been executed on the network.

Other networks like Tron, Bitcoin SV, and Litecoin had settled fairly higher amounts.

Source: Messari

Another interesting metric to peek into at this point is Dogecoin’s NVT. A bird’s eye view would suggest that it has been flashing quite neutral readings of late.

As such, the NVT takes the network value and transactions into account. High readings usually mean that the network value is being able to outpace the value being transferred on the network, and vice-versa.

As illustrated below, the NVT has been peaking regularly. Nonetheless, since the beginning of March, it has noted a handful of lower highs, pushing down the average and indicating that the network ain’t able to cope with the value being transferred on it.

Source: Messari

So, in all, Dogecoin seems to pretty much be in a fix at the moment due to its lagging network activity. So, only when things on this front improve, would it be fair to expect the OG meme token to fare well in terms of price.