Crypto Market Uncertainty Hits Dogecoin and Shiba Inu Hard

The crypto market has been experiencing a downturn, causing bearish sentiment among market participants. On-chain metrics for Dogecoin and Shiba Inu indicate weak demand due to this trend.

According to Santiment data, Dogecoin's Price DAA divergence has dropped to -49%, signaling weak demand in the meme coin's ecosystem. This figure marks a two-month low for DOGE and comes amid its recent drop below the psychological $0.10 level.

Dogecoin's Daily Active Addresses have also wavered, dropping from 87,727 on January 31 to 38,696 on February 28. The total Active addresses over the last seven days are below 300,000, indicating low demand for the meme coin at present.

Shiba Inu is facing similar weak demand amid its recent price downtrend. Santiment data shows that the Price DAA Divergence has dropped to -29%, the lowest level this year. This coincides with SHIB's decline to its lowest level this year, down 25% year-to-date.

Derivatives metrics for both coins are also in the red as traders sit on the sidelines amid market uncertainty. CoinGlass data shows that DOGE's derivatives trading volume is down by over 34%, while open interest and options trading volume have also decreased.