In a surprising turn of events, a staggering 3.3 trillion tokens of the meme-inspired cryptocurrency Shiba Inu ($SHIB), valued at over $28 million, were withdrawn from centralized cryptocurrency exchanges in July. This significant withdrawal has led analysts to believe that the decrease in available supply could potentially impact the cryptocurrency’s market dynamics.
Prominent crypto analyst Ali Martinez revealed on-chain data indicating that 3.3 trillion SHIB tokens were withdrawn from wallets belonging to cryptocurrency trading platforms last month. Data from crypto analytics firm Santiment further confirmed this trend, with the number of Shiba Inu tokens in circulation on exchanges dropping from approximately 87 trillion at the end of June to around 83.39 trillion by the end of July.
July 19 marked a notable day, as two trillion SHIB tokens were withdrawn from exchanges. Interestingly, this event coincided with the crypto lender Voyager selling billions of Shiba Inu tokens in the same month.
Such outflows from exchanges are generally viewed positively for the cryptocurrency as it signals a reduction in supply available for trading, potentially leading to price increases if demand rises.
To further fuel the positive sentiment, the developers behind SHIB recently launched the beta version of the Shibarium bridge. This eagerly anticipated test phase enables users to move their assets from the Ethereum network to Shibarium. The layer-2 scaling solution aims to reduce token supply, boosting the cryptocurrency’s price by removing tokens from circulation through a token-burning mechanism. These “burned” tokens are sent to wallets that can only receive tokens, not send them, effectively locking them away.
The native test network of Shibarium, Puppynet, also achieved significant milestones, recording over 30 million transactions from an estimated 17 million wallets earlier this month. These achievements indicate the network’s steady progress towards a broader release scheduled for the coming months.
In recent times, Shiba Inu has experienced remarkable growth, with explosive growth in daily new addresses on the network during the second quarter of the year. With continued positive developments and increasing interest from users, the future looks promising for this meme-inspired cryptocurrency.