The amount of Shiba Inu (SHIB) held on crypto exchange platforms has dropped by 8 trillion since November, fueling talks of less selling pressure that can push Shib prices higher.
The price of SHIB has surged nearly 30% in the past month amid a broader crypto market resurgence and renewed interest in meme coins. At the same time, the amount of SHIB held on cryptocurrency exchanges has depleted, raising hopes that there will be less selling pressure on the token as the market recovery continues.
According to data from Glassnode, as shared by popular data Analyst Ali, over 8 trillion SHIB tokens (approximately $88 million) have been withdrawn from exchanges since November. At the start of the month, exchanges held around 168 trillion SHIB (approximately $1.8 billion), a supply that now stands at 160 trillion ($1.7 billion).
The cumulative amount of SHIB withdrawals evidently includes a recent 237 billion tokens ($2.3 million) withdrawal from Binance by a new whale. Tron founder Justin Sun also recently withdrew 577 billion SHIB (approximately $6 million) from the leading crypto exchange.
According to Santiment, “keep an eye” on Shiba Inu as top wallets move away coins from exchanges.
? #Altcoins are surging once again, with $ADA now above $0.65 and $SOL amazingly closing in on $100. But keep an eye on $ETH, $SHIB, $FET, and $DENT. These four assets are all seeing their top 10 respective exchange wallets move coins away from exchanges, which is
(Cont) ? pic.twitter.com/t9apBn8Ttt
— Santiment (@santimentfeed) December 22, 2023
Lower Selling Pressure?
The depleting SHIB supply on exchanges is typically considered evidence that investors are purchasing SHIB and withdrawing them into private wallets for long-term holding. In such a scenario, the cryptocurrency usually sees less selling pressure as there is less circulating supply to be traded on exchange.
Conversely, a growth in the balance held by exchanges is considered bearish. It typically indicates that more investors are moving funds to these platforms where they are most likely to be liquidated.
Meanwhile, it is worth noting that a fraction of SHIB is actively traded on decentralized exchanges, suggesting that not all tokens withdrawn from exchanges enter cold storage. For instance, traders exchanged $1.2 million worth of SHIB on leading DEXes Uniswap and ShibaSwap.
At the time of writing, SHIB is trading at $0.00001079, representing a 1% decline on the day. The second-ranked memecoin has a market cap of $6.3 billion, following a mild market retracement over the weekend.
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