Shiba Inu Whales Are On The Move Again, 361 Billion SHIB Stuns Community

Overview

Recent on-chain data for Shiba Inu (SHIB) indicates significant activity among whale holders, with a substantial amount of SHIB being withdrawn from exchanges. This trend has resulted in tighter supply conditions and an increase in burn activity, which may have implications for the SHIB ecosystem and its community.

Decline in SHIB Held on Exchanges

Data from the on-chain analytics platform CryptoQuant reveals a notable decline in Shiba Inu tokens held on exchanges. As of January 16, the total reserves of SHIB on exchanges were approximately 82.6 trillion tokens. By January 20, this figure had decreased to around 82.23 trillion SHIB, indicating that roughly 370 billion SHIB tokens were removed from exchanges within a few days. This movement is primarily attributed to whale activity, as such large transfers are typically not executed by retail traders.

When whales withdraw SHIB from exchanges, they often transfer the tokens to cold storage or long-term holding wallets. This action reduces the immediate supply available for selling, potentially affecting market dynamics. The recent outflow aligns with a broader trend observed since January 2025, where SHIB exchange reserves have steadily decreased from nearly 140 trillion tokens to current levels.

Increased SHIB Burn Rates

Alongside the significant withdrawal of SHIB from exchanges, there has been a marked increase in the burn rate of SHIB tokens. Recent data indicates that the SHIB burn rate surged by over 1,200% in a 24-hour period, with nearly 29 million SHIB tokens permanently removed from circulation. While burn activities are not solely initiated by whales, large holders often contribute by sending substantial amounts of tokens to burn addresses or engaging with ecosystem mechanisms that facilitate burns.

According to data from the burn tracker website Shibburn, a significant portion of these burns stemmed from a single transfer of 28 million SHIB tokens sent to a designated burn address. Additionally, over 51.2 billion SHIB tokens were withdrawn from exchanges within the same 24-hour timeframe.

From Author

The current dynamics surrounding Shiba Inu’s supply and burn activity reflect a concerted effort by whale holders to accumulate and reduce the circulating supply of SHIB. This behavior may signal a strategic positioning among large holders, potentially influencing market sentiment and future price movements.

Impact on the Crypto Market

• The substantial withdrawal of SHIB from exchanges may lead to reduced selling pressure, potentially affecting market liquidity.
• Increased burn rates can create a deflationary effect, which might influence the perception of SHIB’s value among investors.
• Whale activities suggest a potential bullish sentiment among large holders, which may impact smaller retail traders’ confidence in the asset.
• The ongoing trend of decreasing exchange reserves indicates a shift in the way SHIB is being held, potentially altering trading strategies within the community.
• The lack of immediate price movement, despite these changes, may signify market indecision or the need for further developments to catalyze price action.