Over 3T Shiba Inu Withdrawn From Exchanges, Reducing Selling Pressure on Shib

Crypto analyst Ali Martinez reveals a staggering $28 million worth of Shiba Inu tokens withdrawn from exchanges in July, yet price unaffected.

Recently, renowned crypto analyst Ali Martinez shared remarkable findings about transactions related to the enigmatic Shiba Inu, particularly concerning centralized exchanges. 

Martinez took to Twitter to reveal that a staggering 3.30 trillion Shiba Inu (SHIB) tokens were withdrawn from established crypto exchanges in July. This figure amounts to a remarkable dollar value of $28 million.

#ShibaInu | In July, 3.30 trillion $SHIB were withdrawn from known #crypto exchanges, worth around $28 million! pic.twitter.com/k5TWVMVzUh

— Ali (@ali_charts) July 31, 2023

The crypto analyst backed his findings with a comprehensive market chart from the well-known crypto intelligence firm Santiment. The chart presented a compelling narrative of Shiba Inu’s trajectory over the past month on crypto exchanges.

Shiba Inu Outflows from Exchanges 

According to the chart’s data, the circulating supply of Shiba Inu within exchanges was approximately 87 trillion at the end of June. However, the figure saw a significant decline, dropping to about 83.39 trillion by the conclusion of July. 

Amid the gradual outflow of Shiba Inu on exchanges in July, one particular transaction stood out. Specifically, July 19 saw the most significant withdrawal, where at least two trillion SHIB tokens left exchanges. 

Recall that The Crypto Basic reported the bankrupt crypto lender Voyager moving out billions of Shiba Inu tokens in July. The massive withdrawal came following its lawyers seeking over $5 million in compensation.

Typically, investors, especially whales, and sharks, take out their tokens from exchanges when they plan to hold them for a long time. These tokens are withdrawn to cold wallets.

This pattern, in turn, reduces selling pressure on the market and contributes to a price increase over time. The fact that such a massive amount of SHIB has left exchanges could indicate that these investors are seeking to HODL.

This compounds bullish sentiments especially now that SHIB is seeing an uptick in price.

Price Impact on Shiba Inu

It is worth mentioning that crypto whales typically take out their coins from exchanges when deciding to hold for the long term. This pattern historically propels the asset’s price, as is observable in the Shiba Inu case.

Specifically, these massive outflows of Shiba Inu from exchanges have not adversely affected the coin’s price. Data from CoinMarketCap indicated that Shiba maintained a positive trajectory over the past month. Its market cap is about to cross the $5 billion market, a significant uptick from below $4.5 billion in June.

Similarly, Santiment has highlighted Shiba Inu as a surprising winner during a lackluster trading week, as The Crypto Basic reported. The report revealed that crypto sharks and dolphins accumulated around 1.1 trillion worth $9 million in just under eight weeks.