Despite Shiba Inu persistent price weakness, the exchange reserve metric suggests investors are aggressively pulling SHIB off exchanges.
CryptoQuant data indicate that holders are withdrawing SHIB from exchanges at a rapid pace, a trend that could help alleviate selling pressure on the top meme coin.
125B Shiba Inu Out From Exchanges
On November 15, Shiba Inu experienced a major exchange outflow. CryptoQuant data confirmed that approximately 125 billion SHIB were withdrawn from exchanges on that day.
As a result, SHIB’s exchange reserves fell from 81.815 trillion on November 14 to 81.693 trillion on November 15. Although the drop continued into November 16, the reserve metric recovered slightly to 81.77 trillion at press time.
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Shiba Inu Exchange Reserves
Despite the slight rebound, the metric shows that approximately 260 billion Shiba Inu tokens have been removed from exchanges since the beginning of this month. Exchange reserves have dropped from 82.03 trillion SHIB on November 1 to 81.77 trillion as of today.
Easing Selling Pressure, But SHIB Price Struggles
A drop of this magnitude usually indicates that spot selling pressure is waning significantly. Historically, sustained outflows have preceded trend reversals, as the available supply for immediate sale diminishes.
Despite the positive exchange flow data, the price of Shiba Inu has yet to react positively. On November 15, when 125 billion SHIB tokens were withdrawn from exchanges, the token’s price fell to $0.00000895.
It continued its downturn, eventually reaching $0.0000086 on November 16. Currently, SHIB is trading at $0.00000903, marking a 10.13% decline over the past seven days and a 1.06% drop over the past 24 hours.
Nonetheless, the significant drop in Shiba Inu’s exchange reserves suggests that investors are not panic-selling.
Shibarium Activity Wanes
While Shiba Inu’s exchange reserve metric has turned bullish, activity on its Layer-2 network, Shibarium, has slowed sharply. Specifically, transaction volume has plummeted from a monthly peak of 17,270 on October 24 to just 2,430 at the time of this report—an 85.92% decline in only a few weeks.
The steep decline in Shibarium’s transaction volume mirrors the broader market downturn, as investor sentiment slips into a phase of extreme fear.
Despite the recent drop in activity, Shibarium has now processed over 1.56 billion transactions since its launch, surpassed 14.14 million blocks, and reached a total of 272.76 million addresses.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
