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Shiba Inu brings significant losses to its investors. The latest data suggests that the hype around SHIB, once the darling of the memcoin industry, may have led many investors astray.
At the time of writing, a staggering 80% of all Shiba Inu token address holders are incurring losses on their holdings, a fact of concern to both cryptocurrency enthusiasts and investors.
Despite the initial buzz around the Shiba Inu, it looks like the reality of the situation is starting to dawn on many investors.
With such a high percentage of token holders not yet expecting any earnings, it is clear that the hype may have moved too fast.
This sharp downturn in the market has left many crypto capitalists wondering what happened and whether their investments will ever recover.
Shiba Inu Token Holders Are Losing, Data Shows Addresses Are Losing
New data from IntoTheBlock shows that the majority of Shiba Inu token holders are experiencing losses on their holdings.
At the moment, four out of five SHIB investors hold loss-making addresses, which equates to 991,440 addresses with 497 trillion tokens worth about $4.4 billion. This leaves only $668.4 million worth of SHIB, which is currently profitable for its holders.
The situation is further complicated by the fact that many of these unprofitable addresses purchased SHIB at prices ranging from $0.000009 to $0.000014.
According to the data, there are 348,170 such addresses containing a huge amount of SHIB 281.12 trillion.
Currently, the Shiba Inu token ranks sixth among the largest cryptocurrencies in terms of the ratio of unprofitable addresses to profitable ones.
Recent SHIB Prices Raise Long-Term Ownership Concerns
The current price of the Shiba Inu token, listed on CoinGecko at 0.00000892 per token, is attracting attention due to the recent pricing history.
SHIB has a total market capitalization of $5.15 billion on the daily chart of TradingView.com.
The fact that the token was recently priced at a similar level raises concerns about the motivations of current token holders, especially regarding their long-term holding strategies.
The token’s recent 0.4% 24-hour rally is far from impressive, but the 4.1% drop seen over the past seven days is particularly worrisome.
This decline suggests that the value of the token is unstable and unpredictable, which may be due to the high percentage of unprofitable addresses.
Given the current market climate, many investors are looking to keep their crypto holdings in hopes of long-term returns.
However, the recent price history of Shiba Inu tokens suggests that their holders are not taking this approach.
This raises concerns that the token is being used for short-term gain rather than long-term investment, which could lead to further volatility in the value of the token.
– Featured image from PngTree, video from YouTube