More than 110 billion Shiba Inu (SHIB) tokens have recently been withdrawn from cryptocurrency exchanges, a shift that could reduce the immediate available sell-side liquidity for the coin. The withdrawal comes as SHIB, a meme token featuring a Shiba Inu dog and popular among Japanese investors, continues to face muted trading activity amid broader crypto-market lethargy.
Exchange balances and supply dynamics
Exchange wallets are widely monitored as an indicator of potential sell pressure in the market. When large sums move from exchanges to private wallets, it suggests that holders may be opting for long-term storage rather than selling in the near future. According to blockchain analytics provider CoinGlass, the net outflow of SHIB from exchanges reached 110 billion tokens recently.
Such withdrawals can reduce short-term selling pressure, but the tokens remain part of the circulating supply and can return to exchanges at any time. Market observers often look for sustained, long-term outflows as a stronger signal that investors are committed to holding their positions.
CoinGlass reported a 110 billion SHIB net outflow but cautioned that this alone does not indicate a price rebound or a return of strong demand.
Despite the reduction in exchange-held supply, there has not been a corresponding increase in SHIB’s price, as overall demand for meme coins remains subdued with crypto traders showing less risk appetite.
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AAPLOn-chain burns and ecosystem developments
In parallel, Shibarium, the Ethereum-based layer 2 network developed for SHIB, continues to facilitate SHIB token burns. According to Mazrael, a contributor involved with the Shibarium ecosystem, recent burn events have sent hundreds of millions of SHIB to inaccessible addresses, permanently removing these tokens from the circulating supply.
The Shibarium community has raised concerns in recent weeks about a noticeable decline in network transactions and ongoing questions surrounding the role of Bone ShibaSwap (BONE), the governance and utility token within the Shiba Inu ecosystem.
Although ongoing burns are significant from an operational standpoint, given SHIB’s expansive total supply, these activities alone are unlikely to alter the coin’s price trajectory in the near term.
Burn events typically involve sending coins to so-called “dead wallets,” making the tokens inaccessible and effectively reducing the maximum number of tokens that can circulate or be traded on the open market.
Mini dictionary: Shibarium is an Ethereum-based layer 2 blockchain designed to improve scalability, transaction speed, and reduce gas fees for the Shiba Inu ecosystem.
Demand remains the key factor
While both declining exchange balances and ongoing token burns may reduce near-term supply pressures, market watchers emphasize the need for renewed demand and higher network engagement to drive a sustained price recovery for SHIB.
Until there is clear evidence of stronger buyer activity or a rebound in network transactions, analysts anticipate that Shiba Inu could remain subdued.
A closer look at the data suggests that these supply-focused developments may soften some downside risks for SHIB but are not a substitute for a broad revival in market sentiment.
| Factor | Short-term effect | Long-term effect |
|---|---|---|
| 110B SHIB withdrawn from exchanges | Potentially reduces immediate selling supply | Could signal stronger holding behavior if sustained |
| Shibarium SHIB burns | Removes tokens from supply | Limited impact on price due to high total supply |
