Shiba Inu (SHIB) Overview

Shiba Inu (SHIB) has underperformed in the cryptocurrency market this year. However, a recent development regarding the token’s exchange reserves may signal potential upward movement.

Market Position

Once popular among meme coins, SHIB has been overshadowed by Dogecoin (DOGE) in recent years. To combat this, the project has refocused on utility. Despite this, positive developments have not yet translated into price increases. Currently, SHIB trades at $0.00001251 but has seen a weekly pullback of 1.48%, bringing year-to-date losses to 42.25%.

Exchange Reserves

Recent data from Finbold and CryptoQuant reveals that the amount of SHIB held on exchanges has reached an all-time low of 85.3 trillion tokens, which is only 14.4% of the circulating supply.

This decrease could benefit SHIB bulls by reducing selling pressure and indicating that many tokens are moving to private wallets, suggesting a long-term holding strategy. This tightened supply could increase volatility and potentially push prices up.

Additional Factors Supporting SHIB

Despite a challenging environment, SHIB has a large community now reaching 1.5 million members. The introduction of governance token BONE and the progress of Shibarium, the project’s layer-2 solution, further enhance the ecosystem.

Although burn rates dipped following a March 17 peak, recent data from Shiba Burn Tracker shows an uptick in SHIB token burns, with 14,052,230 tokens burned in the last 24 hours. This reflects healthy community engagement and optimism regarding SHIB’s supply dynamic.

Readers should note that while the burn rate has been volatile, it has generally trended upwards since early January.

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