Since peaking at an intraday price high of $0.0000176 on May 12, the leading meme coin, Shiba Inu (SHIB), has witnessed a 33% decline. 

Due to the coin’s lackluster performance, on-chain data reveals that a significant portion of SHIB holders are currently at a net unrealized loss, signaling a state of capitulation in the market. What does this mean for investors?

SHIB Bleeds as 87% of Addresses Now ‘Out of the Money’

According to Glassnode, SHIB’s Net Unrealized Profit/Loss (NUPL) metric shows that the meme coin is firmly in the capitulation zone.

The NUPL metric measures the difference between all holders’ total unrealized profits and unrealized losses relative to an asset’s market cap. It offers insight into whether the market, on average, is in a state of profit or loss.

Per Glassnode, market participants are in capitulation when an asset’s NUPL is negative. This occurs when the total unrealized losses in the market exceed unrealized gains, suggesting that most holders are underwater. It reflects a period of loss where investors either panic sell or hold in distress. 

IntoTheBlock’s Global In/Out of the Money confirms this bearish sentiment. At press time, the metric shows that over 87.34% of all SHIB holders are currently “out of the money.”