No Shiba Inu (SHIB) Selling? Almost 500 Billion Removed

Following the rapid disappearance of nearly 500 billion SHIB from centralized exchange reserves, Shiba Inu is exhibiting an unexpected change in on-chain behavior.

Shiba Inu reserves thinning out

Recent exchange flow metrics show that netflows turned sharply negative, indicating that more tokens are leaving exchanges than entering them, while total SHIB reserves on exchanges fell toward the 81.2 trillion range. This is significant because exchange reserves serve as a proxy for instantaneous sell-side liquidity.

SHIB/USDT Chart by TradingView

Reduced short-term selling intent is typically indicated when significant amounts of SHIB shift from exchanges into private wallets, cold storage, or staking-related infrastructure. Practically speaking, there is less instantly available supply for aggressive distribution or panic selling when there are fewer coins on trading platforms.

The most recent metrics support that story. While total netflow remained significantly negative at more than -430 billion SHIB, exchange reserve balances fell by about 0.5%. Exchange outflows surpassed inflows at the same time, indicating that whales and larger holders are actively removing tokens, rather than preparing to sell their holdings.

Shiba Inu's status is improving

Despite the negative sentiment in the market, active address growth continued to be positive, indicating that network participation has not declined. This contrasts intriguingly with the recent market structure of SHIB. A few weeks prior, analysts were cautioning about growing exchange reserves close to the crucial 81 trillion threshold, claiming that an increase in supply on exchanges raised the possibility of another sell-off wave. The trend now seems to be stabilizing in the other direction.