Shiba Inu eyes recovery as holders pull more than 44 trillion tokens off exchanges
|- Shiba Inu supply on exchanges declined by nearly 45% between March and May.
- Around 44.5 trillion SHIB tokens were removed from exchange wallets, reducing the circulating supply of the meme coin.
- SHIB network activity marked on May 26 the highest increase in new addresses created on a daily basis.
The reserve of Shiba Inu tokens across cryptocurrency exchange platforms has consistently declined between March and May. SHIB holders have pulled 44.53 trillion tokens off exchanges, reducing the circulating supply and thus the selling pressure on the second-largest meme coin.
Also read: Dogecoin retakes meme coin throne as Shiba Inu, Pepe mania fades
Shiba Inu reserves on exchanges decline
Dogecoin-killer Shiba Inu’s reserves across crypto trading platforms declined 33% between March and May. Based on data from crypto intelligence tracker Santiment, there were 88.36 trillion SHIB tokens on crypto exchanges as of May 30, sharply down from the 132.89 trillion in March.
Shiba Inu supply on exchanges (represented by black line)
The chart shows the supply held by top addresses increased as exchange reserves declined. This implies that wallet investors and SHIB holders pulled the tokens off exchanges. These actions resulted in a decline in SHIB supply, easing off the selling pressure at a time when 65% of the wallet addresses holding Shiba Inu are underwater, meaning that they are sitting on unrealized losses. Shiba Inu price is $0.00000870 at the time of writing, meaning that 31% SHIB holders are profitable at the current price level.
Shiba Inu holders sitting on unrealized losses (out of the money)
Moreover, there is an increase in Shiba Inu address activity on May 26. Rising address activity is likely to support a recovery in the meme coin’s price.
According to Glassnode data, 2,538 new Shiba Inu wallet addresses were created that day. This metric marks the daily largest spike in new addresses in the past three months.
Shiba Inu new addresses (plotted in red bars) against SHIB price (black line)
A decline in SHIB prices, coupled with less supply on exchanges and a large volume of new addresses created, are likely to act as a catalyst for the Dogecoin-killer price recovery in the short term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.