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85% of Shiba Inu (SHIB) Addresses Not Profitable – Why?
A recent study has revealed that a staggering 85% of Shiba Inu (SHIB) addresses are not profitable, sparking concerns about the long-term viability of this cryptocurrency. But what could be the reasons behind such an astonishing figure? Let’s dive into the details and explore possible explanations.
To begin with, it is essential to understand the significance of this data. The 85% non-profitability rate implies that a massive portion of SHIB holders are not reaping any benefits from their investment. This raises concerns about market sentiment and the overall performance of the cryptocurrency.
One possibility is that many SHIB investors might be holding onto their assets in anticipation of future gains, which could explain why they haven’t made profits yet. In other words, there may be a large pool of HODLers (holders of long-term investments) who are not selling and instead waiting for prices to recover or rise further.
Another factor could be the intense market volatility experienced by SHIB in recent times. Cryptocurrency markets can fluctuate drastically due to various factors such as regulatory changes, rumors, and sentiment shifts. This volatility may have led to a significant number of traders closing their positions or taking losses, resulting in an unusually high rate of non-profitable addresses.
Additionally, it’s also important to consider the relatively low barrier to entry for SHIB compared to other cryptocurrencies. With a relatively small market capitalization, SHIB has attracted a large number of new investors and speculators, many of whom might not have conducted thorough due diligence before investing. This could lead to an influx of unprepared or amateur traders who are prone to losses.
Lastly, the recent surge in interest among institutional investors and their increased exposure to SHIB may also contribute to this phenomenon. As more institutions take positions in SHIB, the market may become increasingly volatile, leading to a higher rate of non-profitable addresses.
In conclusion, while the 85% non-profitability rate is alarming, it is crucial to consider various factors before jumping to conclusions about the long-term prospects of SHIB.
Source: https://u.today/85-of-shiba-inu-shib-addresses-not-profitable-why
