Shiba Inu (SHIB) has experienced a shift in its movement between centralized exchanges and individual wallets in the past few days. This change coincides with a slight uptick in SHIB’s price.
Reduced Inflow, Increased Outflow
Data from on-chain analytics firm CryptoQuant reveals a significant decrease in Shiba Inu transfers to exchanges. As of June 25th, 2024, exchanges have received approximately 196 billion SHIB tokens. This stands in stark contrast to the massive 2.3 trillion SHIB deposit recorded on June 24th.
Interestingly, the outflow of SHIB from exchanges has risen. Currently, withdrawals amount to roughly 293 billion tokens. When we factor in both deposits and withdrawals, the net flow of SHIB becomes negative, indicating a movement of 95 billion tokens out of exchanges.
Previous Inflow and Price Impact
It’s worth noting that the substantial inflow on June 24th coincided with a decline in SHIB’s price. This suggests that the selling pressure from the deposited tokens outweighed the limited outflow at that time, driving SHIB’s price to $0.00001650.
Examining the broader trend, SHIB inflows to exchanges have been relatively low over the past week, with the token mostly hovering between $0.000017 and $0.000018. The significant inflow on June 24th was the highest since June 11th, when roughly 6.635 trillion SHIB tokens entered exchanges.
Even the June 11th inflow, however, wasn’t enough to trigger a price surge. This is because a counterbalancing outflow of 7.12 trillion SHIB tokens left exchanges on the same day. Consequently, the net flow on June 11th remained negative at around 511 billion SHIB.
Exchange Destinations and Recent Trends
Analysis by blockchain intelligence platform Arkham indicates that major exchanges like Coinbase, Binance, Robinhood, Kraken, OKX, and Gate.io have been the primary destinations for SHIB transfers in recent weeks.
These exchanges have collectively received approximately 13.11 trillion SHIB tokens since last week. However, it’s important to note that withdrawals have slightly surpassed deposits during this period.
Overall, the past month has seen a trend of more SHIB leaving exchanges than entering. This aligns with the ongoing depletion of SHIB reserves on centralized exchanges observed since last year. In June 2023, exchange reserves for SHIB stood at over 175 trillion tokens. Today, that number has shrunk to around 146 trillion, reflecting a net outflow of roughly 30 trillion SHIB over the year.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Investor Considerations
While the recent outflow of SHIB from exchanges could be interpreted as a bullish signal, the ongoing decline in Bitcoin’s price has tempered some investor enthusiasm. At the time of writing, SHIB trades at $0.00001784, representing a modest 6% increase in the last 24 hours.
The interplay between exchange flows, price movements, and broader market trends will be crucial factors to watch in the coming days and weeks as they can influence SHIB’s future performance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
