SHIB exchange reserves hit an all-time low
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Shiba Inu (SHIB) has underperformed the wider cryptocurrency market since the start of the year. However, a recent development concerning the token’s exchange reserves could herald the beginning of a move to the upside. Despite once being one of the most popular meme coins, in recent years, it has become significantly overshadowed by Dogecoin (DOGE). As a response, the project has shifted its focus toward utility — and while positive developments abound, this has failed to translate to an upward motion on the price chart. At press time, SHIB was changing hands at a price of $0.00001251, with a 1.48% pullback on the weekly chart bringing year-to-date (YTD) losses up to 42.25%. SHIB price year-to-date (YTD) chart. Source: Finbold So, what about that exchange reserve development we pointed to as a positive bullish catalyst? Per data retrieved by Finbold from market intelligence platform CryptoQuant, the amount of SHIB tokens held on cryptocurrency exchanges has hit an all-time low of 85.3 trillion. For reference, that amounts to just 14.4% of the cryptocurrency’s circulating supply. SHIB exchange reserve chart. Source: CryptoQuant Why is this a good thing for SHIB bulls? Beyond simply abating selling pressure, it’s a clear indication that a large number of tokens is being transferred to private wallets — which suggests the application of long-term, buy-and-hold strategies as opposed to trading. While tightened supply tends to increase volatility, with the steady growth that the asset’s user base has experienced, this could end up pushing prices upwards. Beyond the exchange reserve, a variety of bullish factors are at play with SHIB. Despite a challenging environment and recent setbacks, SHIB maintains a large, devoted community, which recently reached the 1.5 million mark. The introduction of BONE, a governance token, and TREAT, which is designed to incentivize community engagement herald further advances…
Filed under: News - @ March 21, 2025 4:24 pm