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Shiba Inu (SHIB) Bull Run Easy to Explain With This Metric

Thu, 08/10/2023 - 14:00
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Arman Shirinyan
Shiba Inu price surge is not just fluke; developer momentum points to strategic moves propelling it forward
Shiba Inu (SHIB) Bull Run Easy to Explain With This Metric
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The buzz around Shiba Inu (SHIB) seems to never die down, and a closer look reveals a compelling reason behind the latest price surge. Since July 1, SHIB has witnessed an impressive 25% hike. But why? The answer might lie in a crucial metric: holder distribution.

Recent data suggests that the composition of Shiba Inu holders is skewing toward those who are in it for the long haul. A significant 70% of SHIB's holders have now been holding onto their assets for more than a year. This is a remarkable shift and speaks volumes about the changing perception of the meme coin.

Shiba Inu
Source: TradingView

Historically, meme coins, including SHIB, were viewed as quick, speculative plays by many in the cryptocurrency community. A rapid buy-sell pattern often leads to volatile price swings, as short-term traders attempted to capitalize on short-lived price movements. However, the increasing proportion of long-term holders indicates a maturing investor base that sees potential value in holding SHIB beyond mere speculative gains.

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This transformation in holder composition can have profound implications for Shiba Inu's price performance. With a majority of investors holding onto their SHIB for extended periods, the coin's liquidity is reduced, making it less susceptible to wild price fluctuations resulting from massive sell-offs. Furthermore, a committed holder base provides a foundational level of support to the coin, making it more resilient during market downturns.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.