The supply of Shiba Inu (SHIB) on centralized exchanges is shrinking rapidly, even as the meme coin faces ongoing price uncertainty.
New data indicates that hundreds of billions of SHIB tokens have been withdrawn from exchanges in just a few days, a development that is being interpreted as a potentially bullish signal pointing to accumulation rather than distribution.
Over 361 Billion SHIB Withdrawn From Exchanges in 72 Hours
According to data from CryptoQuant, a total of 361,380,965,000 SHIB tokens exited centralized exchanges between January 16 and Monday.
On Friday, total SHIB reserves across exchanges stood at approximately 82.642 trillion tokens, with SHIB trading around $0.00000856. By Monday, exchange reserves had fallen to 82.28 trillion SHIB, marking a net decline of more than 361 billion tokens.
This sharp drop occurred despite a weekend price retracement that saw SHIB fall to around $0.00000787, suggesting that investors were withdrawing tokens even as prices moved lower.
Binance Records Notable Decline in SHIB Reserves
Binance, the world’s largest crypto exchange by volume, also recorded a meaningful reduction in its SHIB holdings during the same period.
Data shows Binance’s SHIB reserves declined from about 62.53 trillion tokens to 62.42 trillion, reinforcing the broader trend of exchange outflows.
The movement of such large volumes off trading platforms is notable, particularly at a time when SHIB’s price performance has been under pressure.
Market observers note that this pattern often reflects growing confidence among holders rather than panic-driven selling.
Accumulation Signals Emerge Despite Price Weakness
Exchange outflows are typically interpreted as a sign that investors are moving assets into self-custody wallets or long-term storage solutions.
This behavior is commonly associated with accumulation, as it reduces the likelihood of immediate selling.
In SHIB’s case, the withdrawals suggest that many holders are choosing to hold through near-term volatility rather than exit their positions. This trend has helped buoy sentiment within the Shiba Inu community, even as the token struggles to regain upward momentum.
Reduced Exchange Supply May Ease Selling Pressure
One of the key implications of falling exchange balances is a potential reduction in short-term selling pressure.
With fewer SHIB tokens available on exchanges, the amount of supply that can be immediately sold into the market declines. This dynamic can support price stability if demand improves, as tighter supply conditions often amplify the impact of renewed buying interest.
The trend also reflects long-term conviction among holders, who appear more inclined to store SHIB off exchanges rather than trade it in the short term.
SHIB Still Under Pressure Despite Bullish On-Chain Signals
Despite the encouraging on-chain data, SHIB’s price remains under pressure. The token has fallen by about 6.23% over the past 24 hours and is down roughly 6.76% over the last seven days. This divergence between shrinking exchange supply and declining price highlights the fragile state of broader market sentiment.
Caution Still Warranted for SHIB Investors
While large exchange outflows are often viewed as a constructive signal, analysts caution that they are not sufficient on their own to trigger a price recovery.
Exchange withdrawals do not guarantee rising prices, nor do they confirm a trend reversal. Broader market conditions, overall demand, and investor risk appetite remain critical factors in determining SHIB’s next move.
For now, the sharp decline in exchange supply offers a measure of reassurance to long-term holders. However, due diligence and caution remain essential as SHIB navigates ongoing volatility and uncertain market conditions.