Shiba Inu may be gearing up for a significant uptrend as on-chain data indicates that the SHIB reserves on centralized exchanges are declining. Despite facing resistance at the $0.000028 level, Shiba Inu managed to achieve a 12.5% gain in its seven-day performance, even though it subsequently dropped to a low of $0.00002457.
The data from CryptoQuant, an analyst platform, reveals an ongoing decrease in the supply of Shiba Inu on centralized exchanges over the past six months. During Shiba Inu’s peak in October 2021, the supply on exchanges reached around 149 trillion units. However, in March 2022, there was a sudden surge in the number of SHIB tokens on exchanges, totaling around 191 trillion. This increase coincided with a dip in SHIB’s price to around $0.000024.
As the influx of SHIB tokens onto exchanges continued, Shiba Inu experienced significant drops, falling below $0.000007 by June 2022, when the exchange supply approached 200 trillion tokens. However, in the following months, the quantity of Shiba Inu tokens available on exchanges steadily decreased and is currently at approximately 157 trillion tokens, a level not seen since February 2022.
A more pronounced decline in the supply of Shiba Inu tokens on exchanges was observed in late February, preceding a significant rally. On February 21, Shiba Inu was trading at $0.00000956, with over 162.5 trillion SHIB tokens available on exchanges. However, by March 5, the exchange reserves had decreased by 4 trillion tokens, coinciding with Shiba Inu reaching a multi-year high of $0.000045.
The decrease in the supply of Shiba Inu tokens on public platforms creates a scarcity element, which has the potential to drive price appreciation if demand remains stable. Lola, a prominent figure in the Shiba Inu community, recently highlighted this decreasing supply trend and encouraged holders to remain steadfast, predicting a potential uptrend.
While the extent of Shiba Inu’s price response to this trend remains uncertain, community analyst SHIB Knight suggests that the asset could rally to $0.000055 in the near future.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.