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Shiba Inu is displaying structural accumulation patterns after more than 700 billion tokens were removed from exchanges. The decrease in exchange-held supply comes despite muted price action, indicating that long-term investors and large wallets are preparing for potential price volatility.
CryptoQuant's on-chain data shows that more than 250 billion SHIB tokens exited exchanges after a week of low trading activity.
This was followed by an even larger outflow, resulting in the withdrawal of almost 450 billion SHIB tokens, making it one of the most important withdrawal events during the past few months.
The market interprets extended declines in exchange reserves as a positive signal for supply-side market conditions.
The process of self-custodying tokens results in their unavailability for immediate selling, creating reduced short-term selling pressure that typically leads to market consolidation or breakout periods.
According to Arkham Intelligence, an unidentified wallet used a major exchange to transfer around 61.6 billion SHIB before withdrawing all its holdings.
The $500,000 transaction has become a point of interest as it involves rapid execution from one side to another.
Such movements are often associated with liquidity testing, internal wallet restructuring, or aborted distribution plans.
The market patterns from previous cycles show that they lead to accumulation instead of selling, especially when exchanges show continued reserve decreases in the following period.
The price of SHIB has not yet responded to the on-chain indicators, which traders consider as bullish signals. At the time of writing, SHIB is trading at $0.00000773 with a decline of 0.33% during the last 24 hours.
The token maintains strong market correlation with major cryptocurrencies, including Bitcoin and Ethereum, making its short-term price movements dependent on the overall market.
SHIB price remains inside a crucial demand area, which has historically enabled upward price movements, while momentum indicators show signs of stabilization.
The Shibarium Layer-2 network has now processed over 1.5 billion transactions and onboarded approximately 294,000 accounts.
While total value locked remains modest, transaction growth signals increasing network utilization.
Crucially, Shibarium’s gas fee mechanism converts activity into SHIB burns, gradually reducing the circulating supply.
Also Read: BlackRock’s Ethereum Bet in 2026: Why They Stay Bullish
Historically, SHIB has exhibited extended accumulation periods marked by falling exchange balances, increased whale activity, and subdued price action.
These phases have often preceded sharp directional moves once broader market sentiment turns favorable.
While short-term volatility remains, current on-chain data suggests SHIB is in a positioning phase rather than distribution.
