Shiba Inu (SHIB) was subjected to a major downtrend as market investors failed to hang onto the hype within the ecosystem on updates from lead developer Shytoshi Kusama. At the time of writing, Shiba Inu is changing hands for $0.00002401, down by 4.89% in the past 24 hours.
As Shiba Inu struggles to find its feet, three major on-chain metrics are worth watching closely.
Shiba Inu reboot mission
While some investors focus primarily on price trends, a lot of other key ecosystem stakeholders focus on network actions, which generally determine the potential for long-term upsurges.
One of these is the profitability of SHIB. Per data from IntoTheBlock, a little more than 60% of addresses on the network accounting for 806,850 SHIB wallets are in profit at the moment.
With only 36.36%, or 475,260, Addresses out of the money, long-term investors are optimistic that SHIB remains in a bullish spot, with its more than 129% growth in the year-to-date (YTD) factored in. Besides this, the Shiba Inu correlation with Bitcoin (BTC) is also a major factor to note.
As long as Bitcoin remains in good terrain owing to the accumulation of spot BTC ETF products, Shiba Inu may also maintain a fairly strong resilience. Lastly, Shiba Inu holders’ composition time speaks volumes about the emancipation of the digital currency.
Per the IntoTheBlock data, over 76% of current Shiba Inu holders have held it for more than one year. Those holding for 1-12 months are worth 21%, while those holding for less than one month are about 3%.
With this composition, should short-term holders choose to liquidate their holders, the impact may not weigh the token down very much.
Shiba Inu fundamentals
Besides the technical validation that is showing SHIB’s retention, the trend on Shibarium and the expectations of network growth have helped sustain the optimism for the token overall.
From the Shibarium hardfork to the many listings of the Shiba Inu ecosystem tokens, the question of SHIB’s rebound is a matter of if and not when.
