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Shiba Inu (SHIB) Needs 2% to Reach Existentially Important Goal, Here's What It Is

Tue, 12/20/2022 - 11:46
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Arman Shirinyan
Despite poor market performance, Shiba Inu has been gaining more fundamental value
Shiba Inu (SHIB) Needs 2% to Reach Existentially Important Goal, Here's What It Is
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Shiba Inu's path on the market throughout 2022 has not been smooth in any sense: the asset has been going through its ups and downs while moving in a severe downtrend. The situation has not changed in December, and Shiba Inu is still losing an enormous portion of its value. But the situation may change.

Different type of asset

While SHIB has been massively losing its value, most retail outlets did not notice one important detail: the composition of holders. Shiba Inu's market crisis was mostly caused by the fact that the large percentage of the supply was in the hands of short-term retail holders, who had been selling tokens as soon as its value spiked upward, allowing them to break even and forget about the asset completely.

Shiba Inu data
Source: IntoTheBlock

However, the situation may change in the foreseeable future as the percentage of long-term Shiba Inu holders has been crawling to the important threshold of 60%, which will make the majority of holders on the network long-term investors. This is the type of holder you would like to see.

With the growing number of investors who are holding assets for more than a month, Shiba Inu's price performance should stabilize. But the healthier composition of holders is not the only thing investors should expect.

Burning unnecessary weight

The burning mechanism is a backbone of SHIB's stability on the market as the token has been issued with a massive 1 quintillion supply, which must be cut in half for the token to remain sustainable on the market.

Almost Half of Shiba Inu Supply Gone Now, 60 Trillion Left to Destroy

As we have mentioned in our previous articles, there is only 60 trillion left for Shiba Inu to burn to reach the sacramental 50% supply reduction threshold.

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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.