- Shiba Inu’s exchange reserves have plummeted, signaling reduced selling pressure.
- SHIB’s burn rate surged, aiming to reduce supply for potential recovery.
As at the writing time Shiba Inu (SHIB) is down 3.51% in the last 24 hours to $0.00001239. SHIB has been in a bear market since December 2024 and has lost 63% of its value there is a trend that suggests a shift in investor sentiment: SHIB exchange reserves have hit all-time lows. This means there may be less selling pressure as investors are taking their assets off exchanges.
Exchange Reserves at All Time Lows
Shiba Inu’s exchange reserves reached 93.573 trillion SHIB on March 16, a huge drop. According to CryptoQuant, this is only 15.88% of SHIB’s total circulating supply. The decline in exchange reserves means investors are moving their tokens away from Binance, Coinbase, and Crypto.com and into cold storage. Many of these tokens are being transferred out of exchanges and won’t be sold in the short term.
Source: CryptoQuant
Historical data shows a steady decline in exchange reserves over the past few years. In April 2022 there was 200 trillion SHIB on exchanges. In February 2024 that was 165.8 trillion and now it’s below 100 trillion. This trend means traders are holding onto their SHIB tokens for the long term. The movement of exchanges may be a sign of investor confidence in SHIB’s long-term outlook despite the current market woes.
Price Pressures and Surge in Burn Rate
Despite the reserves dropping Shiba’s price is still under pressure. It briefly hit an intraday high of $0.00001285 but then dropped back to $0.00001239. In the last 24 hours trading volume dropped 53.86% to $173.19 million. This tells us that the broader market is bearish and Shiba’s market cap is now at $7.3 billion.
Meanwhile, Shiba’s burn rate has exploded 49,552% in the last 24 hours. 13.29 million Shiba was burned in a single day. One whale transaction burned 12.13 million Shiba and another burn event burned 503.3 million Shiba. One of the transactions burned 459.3 million Shiba. While this reduces the supply it’s not impacting Shiba’s price yet.
Source: Shiba Burn TrackerShiba is trading 80% below all-time high so the path forward is uncertain. But the drop in reserves and the burn rate could be good signs for those hoping for a price recovery. We will see if this trend continues and if it’s a long-term turn around for Shiba.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
