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Shiba Inu (SHIB) faces significant challenges as its exchange reserves hit a historic low, reflecting broader market dynamics.
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The surge in SHIB’s daily burn rate contrasts sharply with the declining trading volume, indicating potential shifts in holder sentiment.
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“The downward trend is evident in historical data,” noted a analysis from CryptoQuant, highlighting the stark changes in SHIB’s market position.
Shiba Inu’s exchange reserves drop to historic lows while burn rates soar, presenting a complex landscape for the memecoin’s future.
Shiba Inu exchange reserve plummets to historic low
According to CryptoQuant data, Shiba Inu reserves on cryptocurrency exchanges have experienced a sharp decline recently. The all-exchange SHIB reserve has fallen to a historic low of 93.5 trillion SHIB, significantly down from 135.4 trillion SHIB recorded in January 2025.
Historically, in April 2022, nearly 200 trillion SHIB, or almost half of the circulating supply, was held on exchanges. By February 2024, this number dropped to 165.8 trillion SHIB.
This sharp decline in exchange reserves aligns with a significant price drop; since December 2024, SHIB has lost over 60% of its value, falling from $0.0000329 to a recent low of $0.000013.
Additionally, Glassnode data unveils another critical trend: Shiba Inu holders from the 2021 batch, who accumulated over 20% of the supply at lower prices, have offloaded their holdings at key price peaks, which triggered sharp corrections.
Currently, large holders, often referred to as whales, have capitalized on this trend by increasing their accumulation. Notably, five whales control 58.38% of SHIB’s circulating supply, collectively holding 574.83 trillion SHIB.
SHIB burn rate and cold storage accumulation
In a notable development, while Shiba Inu reserves on exchanges have dwindled, the daily burn rate has surged significantly. Over the past 24 hours, SHIB’s burn rate spiked by a remarkable 49,552%, with 13.29 million SHIB permanently removed from circulation, as reported by Shibburn.
In a striking instance, one whale burned 12.13 million SHIB in a single transaction.
Just days before this spike, another significant burn event resulted in the destruction of 503.3 million SHIB, with 459.3 million SHIB incinerated in one transaction, pushing the burn rate up 27,660%.
With exchange reserves shrinking and burn rates increasing, SHIB holders are gravitating towards cold storage while actively working to reduce supply. If demand maintains, these trends could bolster SHIB’s long-term value.
For potential recovery, monitoring whale movements is becoming increasingly essential. An uptick in inflows might signal a market bottom for SHIB, thus presenting itself as an attractive ‘dip-buying’ opportunity.
Conclusion
In summary, Shiba Inu is navigating a turbulent period marked by declining exchange reserves and surging burn rates. This volatile environment raises questions about its future as a leading memecoin. With significant shifts in holder behavior and whale accumulation, tracking these developments is critical for understanding SHIB’s potential long-term trajectory. The questions remain: can SHIB recover and regain its former stature among memecoins?
