Despite poor market performance, Shiba Inu has been gaining more fundamental value
The Shiba Inu’s path to the market during 2022 has by no means been smooth: the asset is going through its ups and downs while trending in a serious downtrend. The situation hasn’t changed in December, and the Shiba Inu is still losing a great deal 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.
However, the situation may change in the near future as the percentage of long-term Shiba Inu holders is creeping up to the critical 60% range, which would make the majority of the network’s holders long-term investors. This is the type of holder you would want to check out.
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.
burn unnecessary weight
The burning mechanism is the backbone of SHIB’s stability in the market as the token is issued with a massive supply of 1 quintal, which must be cut in half for the token to sustain in the market.
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.
