The $8 billion worth meme coin Shiba Inu (SHIB) has hit a critically low rate of exchange reserves, according to the latest data from CryptoQuant. The stockpile of Shiba Inu (SHIB) tokens has slumped from 135.6T at the beginning of 2025 to just 85.3T SHIB at present time.
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Naturally, this bears the question of whether these Shiba Inu (SHIB) coins are being moved to decentralized self-custodial crypto wallets or sold off. Low exchange supply could definitely be a bullish sign if it’s coupled with a consistent trading volume, hinting at the meme coin’s scarcity.
In contrast, a steadily low trading volume on Spot markets combined with the scarcity of SHIB coins on-demand in crypto exchanges could simply imply a drop in demand. While Spot market trading volumes have indeed been stagnant, that’s surely not the case for SHIB on Derivatives markets.
Shiba Inu’s 55% Daily Derivatives Hike
With Shiba Inu’s (SHIB) push towards a full-scale decentralization on Shibarium Layer-2, the rapidly dropping crypto exchange reserves attest to this thinking, as the overall on-chain holders have recently breached the 1.5 million mark.
Meanwhile, Shiba Inu coin’s (SHIB) popularity is solidified with a 55% upswing in trading volume on SHIB Derivatives smart contract and another 44% daily hike in the 1000-times multiplied 1000SHIB smart contract.
Summing up to a $229 million in trading volume on Derivatives, it’s important to note that trading on Derivatives doesn’t necessarily require ownership of the underlying assets due to all positions being leveraged.
Roadblock Ahead For Shiba Inu’s Price
Ultimately, the tendency on Derivatives markets shows renewed interest in speculation over Shiba Inu’s (SHIB) future price, raising the Open Interest (OI) weighted funding rate to the highest levels since late January, 2025, according to CoinGlass real-time data.
As of now, the #21 crypto by market capitalization is heading towards a resistance bubble starting at $0.000014, which will be pivotal in determining the canine coin’s upcoming direction. Judging by the metrics on IntoTheBlock, this area holds 544.54 trillion Shiba Inu (SHIB) coins out of 589.25 trillion in total circulation.
If crypto whales begin to make entry points at this price territory, the resistance will be gradually weakening until Shiba Inu (SHIB) hits $0.000035, a price level unseen since December 2024. Currently, the popular dog-embossed meme coin Shiba Inu (SHIB) is exchanging hands at $0.00001350, picking up 7% gains in two days after a 13.6% step back in monthly terms.
On The Flipside
- With more holders on-chain than on decentralized and centralized exchanges, long-term SHIB custodians are likely to continue increasing their stake.
- SHIB holders for at least one year have spiked by 3.55%, while cruisers and daytraders displayed a dropping interest rate, according to IntoTheBlock.
Why This Matters
Crypto exchange reserves typically answer to the market demand, while some communities exercise the belief of holding crypto currencies only on self-custodial or cold storage devices.
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