Shiba Inu (SHIB) is witnessing a sharp decline in its exchange reserves, sparking concerns over its dominance among memecoins. According to CryptoQuant data, SHIB reserves on all exchanges have hit a historic low of 93.5 trillion tokens, down significantly from 135.4 trillion in January 2025. This trend aligns with a broader market pullback and a notable exit of long-term holders (LTHs), raising questions about SHIB’s future.
Shiba Inu Exchange Reserves at Record Lows
Historical data suggests a consistent decline in SHIB’s exchange reserves. In April 2022, nearly 200 trillion SHIB were held on exchanges, which fell to 165.8 trillion by February 2024. Now, the figure has dropped even further, reflecting reduced trader confidence and a shift toward self-custody.
The price impact has been severe. Since December 2024, SHIB has plunged over 60%, falling from $0.0000329 to a recent low of $0.000013. The sell-off has been exacerbated by long-term holders cashing out, with Glassnode data revealing that SHIB holders from 2021 have offloaded substantial amounts at key price peaks, triggering further corrections.
Whales Accumulate Despite Retail Exodus
While retail investors and LTHs have been exiting, large holders have been increasing their SHIB positions. Currently, five whale wallets control 58.38% of SHIB’s circulating supply, holding approximately 574.83 trillion tokens. This trend indicates a potential accumulation phase, where whales could be positioning themselves for a future price rebound.
SHIB Burn Rate Surges
Another critical factor in SHIB’s evolving landscape is its burn rate. In the past 24 hours, SHIB’s burn rate skyrocketed by 49,552%, with 13.29 million tokens permanently removed from circulation, according to Shibburn. A single whale burned 12.13 million SHIB in one transaction. Days earlier, another burn event destroyed 503.3 million SHIB, pushing the burn rate up by 27,660%.
With exchange reserves shrinking and significant SHIB burns occurring, the market is shifting toward cold storage and supply reduction. If demand holds steady, these trends could strengthen SHIB’s long-term value. However, a potential recovery hinges on whale movements. An uptick in inflows could signal a market bottom, making SHIB an attractive buy-the-dip opportunity for investors watching for a turnaround.
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.
Also Read: Shiba Inu Burn Rate Surges 1500%—Is a 500% SHIB Price Surge Next?
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