Speculative SHIB Market Sees Increased 'HODLing'

Shiba inu (SHIB), a meme cryptocurrency, is seeing signs of green shoots in the form of investor interest in HODLing – crypto slang referring to buy and hold an asset for the long term.

The number of "hodlers," or addresses holding the self-proclaimed dogecoin killer for more than a year, has jumped by a staggering 1,900% to 3,750 since late January, data tracked by blockchain analytics firm IntoTheBlock shows. The number of "traders," or addresses holding for less than one month, has declined by 38% to 49,790.
The balance held by long-term investors has increased by 127% to 27.93 trillion during the same period. The tally has increased 57% in the past 30 days alone.
The balance held by "cruisers," or addresses with a holding period of one to 12 months, has dropped by 2% since January, while the number of coins held by traders has increased by 40% to 32 trillion.
The slight tilt toward "hodling" is perhaps a welcome development for the cryptocurrency, which is often criticized for being a gamblers' darling. Analysts consider a surge in SHIB's valuation as a sign of froth and the crypto bull market nearing an end.
"SHIB hodlers remain unfazed and accumulated during the past weeks and it's paying off with today's Robinhood announcement," IntoTheBlock said in a Telegram broadcast.
On Tuesday, the popular trading platform Robinhood Markets listed shiba inu, opening doors for its roughly 17 million users to take exposure to the volatile cryptocurrency. SHIB jumped nearly 22% on Tuesday, registering its biggest single-day percentage gain since Feb. 6, according to data provided by charting platform TradingView.

The balance held by addresses holding SHIB for over a year

While accumulation by holders during the recent dour price action is a welcome development for the bulls, the balance held by these addresses still accounts for just 5% of the total circulating supply of 549 trillion. "Cruisers" or addresses with a holding period of one to 12 months, own more than 93% of the supply, according to IntoTheBlock.
As a result, it's a long way before SHIB can shed its reputation as a cryptocurrency dominated by speculators. While addresses-based metrics are widely tracked to gauge investor activity, they aren't perfect indicators. A single entity can have multiple addresses and can hold its coin stash in several wallets.

Also read: Shiba Inu's Metaverse Will Feature More Than 100K Land Plots

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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

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