- Shiba Inu’s exchange reserve plummeted to a historic low of 96.6 trillion.
- SHIB’s daily burn rate skyrocketed by 49,552%, with 13.29 million SHIB permanently removed from circulation.
Shiba Inu [SHIB] showed signs of weakness after losing over half of its 9.40% weekly gain, with trading volume down 50%.
While the pullback aligns with a broader market correction, on-chain data reveals a major exit of long-term holders (LTHs). Additionally, CryptoQuant data shows a sharp decline in SHIB reserves on exchanges.
With SHIB now over 80% below its all-time high (ATH), its dominance among memecoins is in question. Is it at risk of losing its spot as the second-largest memecoin?
Shiba Inu exchange reserve plummets to historic low
According to CryptoQuant data, Shiba Inu reserves on cryptocurrency exchanges have seen a sharp decline.
The all-exchange SHIB reserve has fallen to a historic low of 93.5 trillion SHIB, a significant drop from the 135.4 trillion SHIB recorded in January 2025.
Source: CryptoQuant
The downward trend is evident in historical data. In April 2022, nearly 200 trillion SHIB, or almost half of the circulating supply, were held on exchanges. By February 2024, this number dropped to 165.8 trillion.
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.
To make matters worse, Glassnode data reveals another critical trend. Shiba Inu holders from the 2021 batch accumulated over 20% of the supply at low prices before offloading at key price peaks. This mass exit triggered sharp corrections.
Source: Glassnode
As both long-term holders and retailers exited, large holders increased their accumulation. Currently, five whales control 58.38% of SHIB’s circulating supply, collectively holding 574.83 trillion SHIB.
SHIB burn rate and cold storage accumulation
While Shiba Inu reserves on exchanges have reached record lows, another key metric has surged – the burn rate.
Over the past 24 hours, SHIB’s daily burn rate skyrocketed by a massive 49,552%, with 13.29 million SHIB permanently removed from circulation, as reported by Shibburn.
A single whale burned 12.13 million SHIB in one transaction.
Source: Shiba Burn Tracker
Just days earlier, another major burn saw 503.3 million SHIB destroyed, including 459.3 million SHIB in a single transfer, pushing the burn rate up 27,660%.
With exchange reserves shrinking and burns increasing, SHIB holders are shifting toward cold storage while actively reducing supply. If demand holds, these trends could boost SHIB’s long-term value.
For a potential recovery, tracking whale movements is more crucial than ever. An uptick in inflows could signal a market bottom for SHIB, making it an attractive ‘dip-buying’ opportunity.
