Despite its recent lackluster performance (down 11.43% in the year-to-date period), Shiba Inu (SHIB), a popular meme coin and rival to Dogecoin (DOGE), may still have a promising future, according to crypto analytics firm Santiment.

Source: TradingView

The firm’s analysis points to several indicators that suggest a potential upward move for SHIB.

A Surge in Network Activity

Santiment reports that the Shiba Inu network has seen a significant increase in activity, with over 2,500 new daily addresses created consistently over the past few weeks. Despite the coin’s underwhelming price performance, this surge in network growth suggests potential promise for Shiba Inu.

Shiba Inu’s Transaction Fees and Token Holders

Santiment’s analysis also reveals that SHIB ranked among the top tokens based on the amount of transaction fees, which is another positive indicator for the coin. Furthermore, the majority of SHIB token holders are currently underwater, which could potentially lead to a decrease in selling pressure.

Decreasing Supply on Crypto Exchanges

Another promising sign for Shiba Inu is the decreasing supply of SHIB on crypto exchanges. According to Santiment’s chart, about 8.6% of SHIB’s supply is on crypto exchanges, down from about 9.1% in June. This decline could indicate that the selling pressure for Shiba Inu is decreasing.

Source: Santiment

The Potential for a Price Rally

Santiment suggests that the recent surge in interest and the new demand for SHIB could soon ignite a price rally. However, the firm also warns that the uptick in interest could be interpreted as a sign of market saturation or possible future decline.

At the time of writing, SHIB is trading at around $0.00000700, down 5.29% in the past 24 hours.

Featured Image Credit: Photo / illustration by LeandroDeCarvalho via Pixabay