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
Investing in meme coins, notorious for their highly volatile nature, is typically popular among short-term traders seeking to make quick profits. However, it seems this is not the case with Shiba Inu.
According to data presented by IntoTheBlock, the average time of holding SHIB is over two years. The market intelligence platform also revealed that approximately 75% of those having exposure to the self-proclaimed Dogecoin-killer have hopped on the bandwagon more than a 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.
Despite not performing quite well lately, several factors hint that a renewed SHIB bull run might be just around the corner. One such element is the asset’s burn rate, which exploded in the past week and throughout 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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