- 421,850 SHIB addresses are now in profit—a notable hike from the long drawdown period.
- SHIB may be undervalued, considering the NVT signal and MVRV ratio.
Shiba Inu’s [SHIB] surge ensured that a sizable number of the meme’s holders find themselves in a new position —no longer underwater. The term “underwater” refers to a situation where the current price of an asset is lower than the price at which it was acquired, potentially resulting in losses for investors.
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Leaving despair for delight
Previously, for a long period of time, more than 80% of SHIB holders were in losses. But according to Chain Afirk, an African web3 community on Twitter, 33.03% of SHIB holders were now in profit.
Data pulled from @intotheblock shows that about 33.03% of wallets holding $SHIB are currently in profit, this might increase as time goes . pic.twitter.com/GkUTK5pQfX
— Chain Afrik (@ChainAfrik) August 11, 2023
The data, which Chain Afrik pulled from IntoTheBlock, showed that 421,850 SHIB addresses were in the money. Although this was much lower than the 798,180 addresses that were out of money. The increase means that respite has come to the memecoin’s clan as those at the breakeven point also increased.
As SHIB’s price trajectory shifts, long-term holders are beginning to wonder if their holdings will continue to move into profitable territory. According to Santiment, SHIB’s exchange inflow was 361.4 million in the last 30 days.
Exchange inflow describes the number of tokens that moved from non-exchange wallets to exchange wallets. Conversely, exchange outflow measures the number of tokens that moved from exchange wallets to non-exchange wallets.
And at press time, SHIB’s exchange outflow was 8.18 million. Generally speaking, a higher exchange inflow than an outflow means that an asset is not far off from a big sell-off. So, it’s possible that SHIB may have reached a short-term local top.
Source: Santiment
SHIB may have hit the local top
When it comes to the Network to Volume Transaction (NVT) signal, Glassnode data showed that the metric had increased to 170.52. The NVT signal uses the 90-day moving average of the daily transaction volume to identify whether an asset is trading at a premium.
For the NVT signal to be this high, it means that Shiba Inu’s market cap has exceeded the transaction volume. Therefore, SHIB may be currently inflated and have coincided with a market top.
Source: Glassnode
How much are 1,10,100 SHIBs worth today?
Furthermore, the 30-day Market Value to Realized Value (MVRV) ratio increased to 6.71%. The MVRV ratio shows the relationship between the current price and the average price of every token acquired.
High MVRV values indicate the market holds large unrealized profits. Low values of the metric means the market holds small unrealized profits. Therefore, the hike in the MVRV ratio means more investors may be willing to sell SHIB as the potential profits increase.
Source: Santiment
