According to Santiment, Shiba Inu (SHIB) is currently undervalued. The analysis combined SHIB’s short, mid, and long-term realized capitalizations. Moreover, SHIB is not the only crypto whose value is less than what it should be. According to Santiment, XRP, Cardano (ADA), Polygon (MATIC), Uniswap (UNI), and Chainlink (LINK), all follow the same pattern. Santiment mentioned that these assets could make up for it over the summer.
📊 Several of the largest #altcoins show undervaluation when combining short, mid, and long term realized capitalizations. Market caps are above realized caps for $XRP, $ADA, $DOGE, $MATIC, $SHIB, $UNI, & $LINK, hinting many may make up ground this summer. https://t.co/3wLIFZ8B90 pic.twitter.com/WMzy4imOO9
— Santiment (@santimentfeed) June 4, 2023
Shiba Inu (SHIB) has been on a downtrend in 2023. The popular memecoin has struggled even through April when other cryptos such as Bitcoin (BTC) and Ethereum (ETH) were rallying. With many product launches lined up for this year, SHIB could make up for all the value it has lost over the last couple of months. Fans and users are eagerly waiting for the launch of Shibarium, the project’s layer-2 protocol. According to lead developer Shytoshi Kusama, Shibarium could be released between June and August. Therefore, we are very close to seeing the SHIB blockchain go live.
Shiba Inu large transactions drop, cause of worry?
Apart from being undervalued, SHIB is also seeing a drop in large transactions, according to IntoTheBlock data. The average number of large transactions has reduced from 365 to 95, and the overall volume of these transactions has also significantly decreased. Shiba Inu’s decentralized exchange, ShibaSwap, has likewise experienced a sharp decline in the total value locked (TVL). According to DefiLlama, TVL has fallen from $600 million in November 2021 to only $24.69 million today.
The development seems to appear like a liquidity crunch. However, this might just be a temporary setback. Order book information, which sheds light on buyer-seller trade discrepancies, shows a rise in SHIB purchases over time.
At press time, Shiba Inu (SHIB) was trading at $0.00000854, down by 1% in the last 24 hours. Moreover, SHIB is down by 90.08% from its all-time high of $0.00008616, attained in October 2021.