Shiba Inu (SHIB) Exchange Reserves Hit Record Lows—Is a Price Surge Coming?

Sean Williams
SHIBA INU (SHIB)

Shiba Inu (SHIB) reserves on exchanges have plunged to all-time lows, signaling a shift in market sentiment. According to CryptoQuant data, SHIB reserves fell from 135.4 trillion in January to just 93.5 trillion, marking a significant reduction in available supply. This drop is attributed to long-term holders cashing out amid a broader market downturn. However, large investors continue accumulating, and token burns have surged, leaving many to question whether SHIB can stage a recovery.

SHIB Reserves Plummet as Retail Traders Exit

SHIB exchange reserves have steadily declined over the years. In April 2022, exchange wallets held over 200 trillion tokens. By February 2024, reserves had shrunk to 165.8 trillion. The latest figure of 93.5 trillion represents a historic low, reinforcing the trend of SHIB moving off trading platforms.

The price of SHIB has mirrored this decline. Since December 2024, its value has dropped 60%, from $0.0000329 to $0.000013. Many long-term holders who bought during the 2021 bull run have been taking profits at key levels, exerting selling pressure. Glassnode data confirms that these early investors offloaded 20% of the total supply. While retail traders exit, whales have increased their holdings, signaling long-term confidence. Currently, five major investors control 58.38% of SHIB’s total supply, collectively holding over 574.83 trillion tokens.

Surging Burn Rate Boosts Scarcity

Alongside the decline in exchange reserves, Shiba Inu’s burn rate has skyrocketed. Shibburn data reveals a 49,552% surge in token burns within 24 hours, further reducing SHIB’s circulating supply. A single whale recently burned 12.13 million SHIB in one transaction, while another eliminated 503.3 million tokens, including a massive 459.3 million burn.

Also Read: Shiba Inu (SHIB) Poised for Breakout Amid Whale Activity

Will SHIB Rebound?

With exchange reserves at record lows and token burns increasing scarcity, SHIB’s long-term potential remains a hot topic. If demand holds steady, a supply squeeze could drive prices higher. Whale activity will be a crucial factor in determining SHIB’s next move, and a spike in inflows could signal a potential market bottom. For now, investors are watching closely to see if SHIB can defy the odds and recover from its prolonged downtrend.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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