Shiba Inu’s on-chain data shows an interesting dynamic between SHIB holders and their relationship with crypto exchanges. CryptoQuant’s recent indicators have shown continued withdrawals from the exchange alongside a notable increase in burn activity over the past few days, all signs of tight supply conditions.
This decline in exchange supply reflects hundreds of billions of SHIB tokens being removed from exchanges in recent days, a trend dating back a year.
Significant decline in SHIB on exchanges
According to data from on-chain analytics platform CryptoQuant, SHIB exchange reserves decreased significantly as whale wallets withdrew large amounts of tokens from trading platforms. On January 16th, the total exchange reserve for Shiba Inu was It was approximately 82.6 trillion SHIB. As of January 20, this figure has decreased to approximately SHIB 82.23 trillion.
This change means that approximately 370 billion SHIB has been removed from exchanges in just a few days. Migration of this magnitude is rarely caused by retailers, so such movements are usually attributed to whale activity. When whales move SHIB off exchanges, the tokens are often sent to cold storage or long-term custody wallets, reducing the supply available for immediate sale.
SHIB exchange contract. Source: CryptoQuant
This short-term outflow also fits into a larger trend of outflows from crypto exchanges starting in January 2025. According to CryptoQuant data, SHIB exchange reserves at the beginning of January 2025 were close to 140 trillion tokens. However, since then, SHIB whales have been steadily reducing their exchange balances, which has reduced their reserves to the current level of approximately SHIB 82.2 trillion. The consistency of this decline suggests deliberate accumulation or long-term positioning by large holders.
SHIB exchange contract. Source: CryptoQuant
Whale activity correlates with increased SHIB burning rate
In parallel with Whale withdrawing SHIB from exchanges, burn activity across the Shiba Inu network is intensifying. According to recent on-chain data, SHIB burn rates have increased by over 1,200% in the past 24 hours, with approximately 29 million SHIBs permanently removed from circulation.
Burns are not only caused by whales, but large whales often plays a role by sending A large token for writing addresses or interacting with the ecosystem Shibarium-like mechanism Doing so may cause burns. Data from write tracker website Shibburn shows that the majority of these writes were done through a single transfer of 28 million SHIB tokens sent to the write address CA.
SHIB burn rate. Source: Shibburn.com
According to data from CryptoQuant, more than 51.2 billion SHIB tokens were withdrawn from crypto exchanges in the past 24 hours alone. So far, the price movement of the Shiba Inu has not shown any decisive movement in response to these changes. At the time of writing, Shiba Inu was trading at $0.00000794, up 1% in the past 24 hours but down 7.6% in the past 7 days.
SHIB exchange netflow. Source: CryptoQuant
Featured image created by Dall.E, chart on Tradingview.com
