TL;DR

Shiba Inu (SHIB) boasts a strong, largely long-term holder base, with over 78% of its 1.5 million+ investors holding for over a year. Despite a recent 9% price dip, factors like increased token burns, Shibarium development, and rising exchange outflows suggest a potential rebound.

SHIB's Strong Holder Base

Launched in 2020 as a meme coin, Shiba Inu has evolved into a more developed ecosystem. This, coupled with community hype, has contributed to its popularity, exceeding 1.5 million holders. IntoTheBlock data reveals that a significant 78% of these investors have held SHIB for over a year, compared to approximately 75% for both Bitcoin (BTC) and Ethereum (ETH). This high percentage of long-term holders suggests a committed investor base less prone to impulsive selling during market volatility. It's important to note that many of these long-term holders may have acquired SHIB during its 2021 price surge and are currently experiencing unrealized losses. IntoTheBlock data indicates that nearly 60% of SHIB investors are underwater, with 37% in profit and 4% breaking even.

Potential for Price Increase

While SHIB experienced a 9% weekly price decline, several factors hint at a potential price recovery. The token burn rate has surged over 350% in the past week, with over 410 trillion SHIB tokens burned since the program's inception in 2022. This reduction in circulating supply (currently around 584.4 trillion, according to a SHIB tracker) could increase value, provided demand remains stable or increases.

Further contributing to potential upward momentum is the ongoing development of Shibarium, the layer-2 scaling solution. Significant milestones achieved in Shibarium's development have led some to predict a substantial price increase upon further advancements. Additionally, recent SHIB exchange outflows have outpaced inflows, indicating a shift towards self-custody and reduced selling pressure.

The post Shiba Inu (SHIB) Surpasses Bitcoin (BTC) and Ethereum (ETH) in This Key Metric: Details appeared first on CryptoPotato.