SHIB is currently seeing signs of growth in the interest of investors who want to buy and hold SHIB tokens for a long time, which is usually over a year. This set of investors is called HODLERS.
According to data from IntoTheBlock, the number of addresses holding the memecoin for more than a year has increased by 1,900% to 3,750% since January. In addition, the number of “traders” or addresses holding for less than one month dipped by 38% to 49,790.
Long term investors’ balance increased by 127% to 27.93 trillion during the same period. The tally has boomed 57% in the past 30 days alone. The balance held by “cruisers,” or addresses with a holding period of one to 12 months, has dropped by 2% since January, while the number of coins held by traders has increased 40% to $32 trillion.
The positive shift toward HODLing is a good sign for Shiba Inu, which is often backlashed for being a gamblers’ darling. However, experts believe that a rise in SHIB’s valuation is a sign of froth, and the crypto bull market is nearing an end.
The Robinhood Effect
IntoTheBlock, during a Telegram broadcast, noted: “SHIB hodlers remain unfazed and accumulated during the past weeks, and it’s paying off with today’s Robinhood announcement.”
Recall that on Tuesday, the popular trading platform Robinhood listed Shiba Inu, creating an opportunity for its roughly 17 million users to take exposure to the volatile cryptocurrency. As a result, SHIB jumped nearly 22% on Tuesday, registering its biggest single-day percentage gain since Feb. 6, according to charting platform TradingView.
According to IntoTheBlock, holders’ accumulation during the dour price action could be a welcome development for the bull. However, the balance held by these addresses accounts for 5% of the total circulating supply of 549 trillion. Therefore, cruisers own more than 93% of the supply.
So, it may take a while before SHIB can forgo its reputation as a cryptocurrency dominated by speculators. While addresses-based metrics are widely tracked to gauge investor activity, they are not perfect indicators. A single entity can have multiple addresses and hold its coin stash in several wallets.