Shiba Inu exchange outflow reaches 2 trillion tokens in a week despite its falling price, eliciting diverse speculations from community members.
Shiba Inu has remained among the top trending assets in the crypto scene. This is mainly due to the emergence of Shibarium and the recent developments surrounding the layer-2 scaling solution.
While the Shiba Inu development team continued to work on modalities to increase Shibarium’s stability and scalability, the delayed public relaunch adversely affected SHIB’s price.
Shiba Inu Exchange Outflow
Amid the falling price of the canine-themed asset, investors have taken off 2 trillion tokens from exchanges. A prominent market watcher, Ali Martinez, called attention to this recent turn of events.
— Ali (@ali_charts) August 27, 2023
Notably, the renowned crypto analyst revealed that a whopping 2 trillion SHIB tokens flowed from exchanges between August 20 and August 27.
To buttress his point, he shared a Santiment chart reflecting Shiba Inu’s supply on exchanges. The chart also contains data on the exchange outflows recorded from August 6 to 27.
According to the chart, the highest SHIB exchange outflow occurred on August 23, with nearly 840 billion SHIB pulled from crypto exchanges on that day.
It bears mentioning that roughly 762.25 billion SHIB flowed out of exchanges on August 22. The chart further revealed that over 110 billion SHIB tokens were moved from undisclosed exchange wallets on August 21.
While the motive behind these heavy outflows remained unknown, these voluminous exchange outflows imply that investors intend to hold their assets for the long term. This can contribute to a price increase, as it reduces selling pressure.
Reacting to the positive development, a certain community member speculated that investors were moving their Shiba Inu tokens to Shibarium addresses.
Amid this development, block production has resumed on the L2 network, as recently reported. The Shiba Inu L2 blockchain went live on GeckoTerminal and Coingecko last weekend. Notably, the team recently announced that the network is now up for public use.