TL;DR
- Shiba Inu investors have a long-term commitment compared to the shorter holding periods seen with other meme coins.
Despite a recent price decline, several positive developments, including an increased token burn rate and activity on the layer-2 blockchain solution Shibarium, hint at a potential upcoming rally for SHIB.
Diamond Hands
Meme coins, known for their extreme price swings, are usually favored by traders looking to make swift gains in the short term. Contrary to this trend, Shiba Inu appears to attract investors with a different approach.
Based on IntoTheBlock’s data, the typical SHIB investor has held onto their tokens for over two years. Moreover, about three-quarters of those currently invested in what is known as the Dogecoin-killer joined the community more than one year ago.
In comparison, Cardano (ADA) investors stay in the ecosystem for an average of one year, while Ethereum (ETH) and Dogecoin (DOGE) holders share the same span as those of Shiba Inu. Bitcoin (BTC) remains a leader in this ranking. The average time the asset is held exceeds four years.
Shiba Inu Price Outlook
The meme coin’s price retreat of around 20% on a weekly scale has resulted in a diminishing chunk of investors who currently sit on paper profits. Latest data shows that around 38% of SHIB holders are underwater. Still, the current trends look much better than the ones observed in September last year. As CryptoPotato reported, back then almost 90% of Shiba Inu investors were in the red.
Although SHIB hasn’t been doing great recently, some indicators suggest that a new bull run for this asset could be imminent. One potential reason is the significant increase in its burn rate over the past week and throughout the month of March.
The resurgence of Shibarium is also worth mentioning. Shiba Inu’s layer-2 scaling solution has witnessed a substantial revival in the last few days, with daily transactions on the network nearing the 1 million mark.
Last but not least, SHIB’s exchange netflow has turned predominantly negative on a weekly basis, indicating a shift from centralized platforms to self-custody methods. Such a move is considered bullish since it reduces the immediate selling pressure.
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2024-04-17 18:26