Despite meme cryptocurrency Shiba Inu (SHIB) is experiencing heightened price volatility in recent days, a majority of the token holders are still in profit.
According to on-chain data provided by Intotheblock.com, 72% of SHIB wallet addresses are making money at the token’s price of $0.000051 by press time.
Furthermore, only 17% of holders are not making a profit on their initial SHIB investment. They are possible late investors who bought the coin when the value plunged from the recent all-time high. Notably, buying at low presents an opportunity of profiting once prices begin to surge.
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On the holder’s distribution, the coin’s early investors are likely controlling the largest of the asset’s tokens in supply. The data indicate that the concentration by large holders stands at 78%. However, the SHIB whales have been criticized as they have a significant influence on the token’s future price movement.
For any address with a balance of tokens, ITB identifies the average cost at which those tokens were purchased and compares it to the current price. If the current price if higher than the average cost, address is “In the Money.” If the current price is lower than the average cost, the address is “Out of the Money”. Elsewhere, the concentration by large holders shows the total holdings of whales (addresses that own more than 1% of the circulating supply) and Investors (addresses that own between 0.1% and 1% of the circulating supply).
The high number of wallets making profits stems from SHIB’s popularity that has surged over the recent months. Notably, the possibility of high returns from the token has also resulted in a growing number of holders.
For instance, between October 10 and November 8, 2021, the number of Shiba Inu holders surged 31%, from 706,808 to 926,684, with the coin growing 111% over the period. The token has attracted more users due to factors like the low price per coin, which makes it easier to get involved, unlike other expensive assets like Bitcoin.
SHIB’s volatility continues
By press time, SHIB’s value had dropped by almost 1% in the last 24 hours, with the weekly drop standing at 9%. As we previously reported, SHIB has been undergoing heightened volatility, wiping out $7.26 billion from its market cap between November 4 and November 10.
The volatility was mainly triggered by a whale that made four transactions of ten trillion (10,000,000,100,000) SHIB to four different wallets. At the time, a single transaction was valued at around $586 million.
Overall, the coin’s popularity has surged in recent weeks, mainly aided by factors like the listing on Coinbase, which resulted in an inflow of $870 million within 24 hours.
Elsewhere, the SHIB community is also projecting a surge in value if the token earns a listing on retail trading platform Robinhood. Consequently, over half a million people have signed an online petition calling for the Shiba Inu (SHIB) listed on Robinhood.
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