SHIBA INU is still suffering adverse effects of volatility in the general crypto market, as the coin lost a significant number of its holders in less than a week.

According to CoinMarketCap data, the total number of addresses holding SHIB stood at 1,198,22, as of June 2 while on June 8 it dropped to 1,176,715, resulting in a loss of 21,507, in less than a week.

It is also reported that at some point, it dropped by 23,576 in just a day between June 3 and June 4.

However, it is worthy of note that before the drop, the number of SHIB holders have been rising steadily in correlation with the increasing activities on the network.

The drop in the number of holders comes after SHIB recorded a consistent decline in transactions. Between January 2022 and May 2022, the number of transactions on the network went down by over 26%.

The abrupt loss in holders might be an indication that the hype around meme coins could be fading once again most likely due to limited utility.

As of June 2 in a bid to improve its prospects, the network recorded a significant burn rate that spiked by 190% within 24 hours.

Despite maintaining its position amongst top-ranked cryptocurrencies, the market capitalization of SHIB took a hit as it went down by at least 10% in the last seven days.

Featured image source: Finbold.