The ratio of Shiba Inu (CRYPTO: SHIB) supply held by long-term holders has reportedly surpassed that of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
What happened: As of this writing, 76% of SHIB holders have held their tokens for over a year, according to IntoTheBlock, while 22% have held on for more than a month but less than a year. Just about 2% of the investors have held SHIB for less than a month.
In comparison, about 74% of Bitcoin and Ethereum investors have HODLed for over a year.
Notably, both BTC and ETH have significantly larger market capitalizations and have been around longer than SHIB, making it a significant milestone for the community.
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Why It Matters: An increase in supply held by long-term investors typically indicates less inclination to sell and confidence in the asset’s future value, according to Coinglass.
Additionally, as more coins become illiquid and leave circulation, it can lead to scarcity, potentially driving up the price if accompanied by continued demand.
Another aspect to consider was the profitability of the network. At the prevailing price, just about 40% of SHIB holders were in profit, compared to 88% for Bitcoin and nearly 50% for Ethereum.
The reduced unrealized profit may have pushed SHIB holders to resist selling until prices became favorable to them.
It’s also worth pointing out that more than 74% of SHIB’s supply was controlled by whales—addresses holding over 1% of the supply—compared to 55% for Ethereum and just 11% for Bitcoin.
A high whale concentration indicated lower decentralization and potential monopoly by a few powerful players.
Price Action: At the time of writing, SHIB was exchanging hands at $0.00001343, down 7.29% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the cryptocurrency fell 38%.
Image via Shutterstock
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