Backed by generally positive market sentiments, meme cryptocurrency Shiba Inu (SHIB) is demonstrating strength in the short term, propelling the token to shed a zero as it continues to rank among the best-performing digital assets at the moment.
Before the current movement, SHIB had exhibited a sideways trading pattern in recent weeks as investors awaited a possible breakout amid notable onchain developments aimed at giving the coin more utility.
With the recent uptick in SHIB’s valuations, investors are also reaping profits. Notably, data obtained by Finbold on March 3 from the crypto on-chain analysis platform IntoTheBlock revealed that 63% of current SHIB holders are making money, with 32% recording losses, while only 5% have broken even.
SHIB holders making money at current price. Source: IntoTheBlock
A breakdown of the holders indicates that 77% have held their SHIB for over a year, 20% have held SHIB between one and 12 months, and the remaining 3% have held SHIB for less than a year.
SHIB holders’ composition over time. Source: IntoTheBlock
SHIB’s key metrics on the rise
The surge in SHIB’s price aligns with a notable rise in key metrics associated with the coin’s ecosystem. For instance, by press time, besides stablecoins, SHIB was the third highest cryptocurrency in trading volume, with the 24-hour figure at $4.2 billion.
The gains have also coincided with a period when SHIB is witnessing increased social interactions with data by LunarCrush revealing that in February, Shiba Inu’s social interactions reached an all-time high, rising by +1,520.6%, helping launch a new frenzy around meme cryptocurrencies.
It’s worth noting that although SHIB is currently significantly influenced by overall market sentiment, other elements, such as ongoing network development, are also touted to impact its valuations.
In this line, excess token burning remains a crucial element seeking to give SHIB more utility. The activity has continued to accelerate, with data from Shiba Inu burn tracker Shibburn indicating that 643,656,418 SHIB tokens were burned from 134 transactions in February.
??? 643,656,418 $SHIB tokens have been burned in the month of February with 134 transactions. #SHIB pic.twitter.com/F6ihbnd76o
— Shibburn (@shibburn) March 1, 2024At the same time, after unveiling the layer two scaling solution, Shibarium, in 2023, Shiba Inu developers are increasingly focusing on enhancing the ecosystem with new products. Currently, Shiba Inu plans to introduce a new privacy-focused network on top of the Shibarium blockchain to boost the value proposition of SHIB tokens.
SHIB price analysis
By press time, SHIB was trading at $0.000020 with daily losses of about 1%. The meme coin has rallied by almost 120% on the weekly chart.
SHIB seven-day price chart. Source: Finbold
In the meantime, the main focus for SHIB will be to sustain the current gains, although it faces threats of correction if most investors turn to profit-taking.
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