Why does Shiba Inu hold so much promise? Taking a closer look

• Many SHIB holders have resisted selling despite holding through the highs and lows.
• Fewer new addresses interacted with the network, indicating a decrease in demand.

No less than 75% of the total Shiba Inu [SHIB] holders have owned the token for more than 365 days, AMBCrypto discovered after assessing data from IntoTheBlock.

When something like this happens, it means that holders of the token care less about price swings, and are confident of the long-term potential.

In the last 365 days, SHIB’s price has increased by 86.19%. But before it came to that average, the value hit some unexpected lows. Despite the one-year performance, SHIB was still 74.13% down from its All-Time High (ATH).

Will SHIB reward loyalty?

While a chunk of these holders have decided to stick to the memecoin, not all of them were making money at the current value. According to on-chain data, 57% of Shiba Inu holders were in the money.

On the other hand, 36% were in loss.  But what do other signals say about SHIB’s potential? One of the indicators AMBCrypto looked at was velocity.

Velocity shows how fast tokens are circulating in the network. If the metric increases, then it means tokens are moving quickly. However, if the metric decreases, it suggests otherwise.

Besides revealing the movement of coins, a token’s velocity affects its intrinsic value in the long term. For Shiba Inu, the velocity was down to 0.013, suggesting that circulation has been low.

Source: Glassnode

The decline also confirmed the sentiment many participants have been holding SHIB for a long while. The longer people hold the token, the higher the price can go.

The day to rejoice may not be close

Therefore, if holders who are in the money decide not to take profits as time goes on, SHIB could rise much higher.  Another metric that could be instrumental to SHIB’s price is active addresses.

This indicator estimates the number of users on a network. However, it is important to note that this metric is not perfect, as a single entity could own multiple addresses.

Still, it gives insights into the daily usage of the chain. At press time, the 24-hour active addresses on Shiba Inu were 4962. This was a significant decline from the number on the 5th of March.

Around that period, activity was high on the network, and this propelled the price to $0.000029. As of this writing, SHIB changed hands at $0.000022.

Source: Santiment

Therefore, it might be challenging for the value to retest that point in the short term. However, activity on the network is expected to increase in the coming months, and this might drive a rally for Shiba Inu.

Read Shiba Inu’s [SHIB] Price Prediction 2024-2025

To validate this prediction, network growth, which tracks the number of new addresses, also needs to climb. At press time, the metric was also down.

However, if the network growth rises to 10,000 or more, SHIB might reward holders for their faith in the token.