The cryptocurrency market, with its recent general revival, has increased interest in meme coins, and this trend has caused a notable rise in the price of the Shiba Inu (SHIB) token. Over the past month, SHIB’s value increased by approximately 30% with these developments, attracting the attention of investors.
At the same time, the amount of SHIB held on cryptocurrency exchanges has decreased, raising analysts’ hopes that there will be less selling pressure for the meme coin.
Glassnode shared by popular data analyst Ali to your data According to the data, the amount of SHIB withdrawn from the stock exchanges since November is over 8 trillion, which represents a value of approximately 88 million dollars. The amount of approximately 168 trillion SHIB (about 1.8 billion dollars) on the exchanges at the beginning of November has now decreased to 160 trillion (about 1.7 billion dollars). This situation has strengthened expectations that SHIB has been withdrawn from the stock exchanges, decreasing its circulating supply and therefore its price may increase.
#ShibaInu | Since November, there’s been a massive withdrawal of over 8 trillion $SHIB from known #crypto exchange wallets – that’s valued at approximately $88 million! pic.twitter.com/RLFA8N0dLI
NEWS CONTINUES BELOW— Ali (@ali_charts) December 24, 2023
This huge amount withdrawn from SHIB includes 237 billion tokens ($2.3 million) withdrawn from Binance, clearly by a new whale. Tron founder Justin Sun also recently withdrew SHIB 577 billion (about $6 million) from the leading crypto exchange.
to Santiment according toWhile the best wallets are pushing cryptocurrencies away from exchanges, Shiba Inu is one to watch.
Low Selling Pressure for SHIB?
In the cryptocurrency market, the decrease in the supply of prominent assets, especially SHIB (Shiba Inu), on exchanges stands out as an important issue in terms of investor behavior and general market dynamics. This situation can be evaluated from many perspectives and is often related to long-term investment strategies and market expectations.
First of all, investors purchasing SHIB tokens and then withdrawing them to private wallets can be considered a sign of a long-term holding strategy. This action indicates that investors view a particular crypto asset not only for its potential to increase in value but also as a long-term investment and therefore prefer to store it in secure private wallets. When investors withdraw their SHIB holdings from exchanges, this generally results in less circulating supply and therefore the cryptocurrency is less affected by selling pressure.
On the other hand, increases in SHIB supply on exchanges often have the opposite effect. Increases in SHIB balances on exchanges may increase the likelihood that investors will dispose of this asset. This may indicate that confidence in a particular crypto asset has decreased and investors are becoming more risk averse.
By the way, it is worth noting that part of SHIB is actively traded on decentralized exchanges; This shows that not all tokens withdrawn from exchanges enter cold wallets.
You can follow the current price movement here.
Source : the crypto basic