Crypto analyst Ali Martinez has revealed that an astounding $28 million worth of Shiba Inu (SHIB) was withdrawn from exchanges in July, which represents the reduction of selling pressure on the dog-themed digital asset.
According to Martinez, approximately 3.30 trillion SHIB was moved out of centralized exchanges last month. This noteworthy withdrawal was substantiated by a market chart provided by crypto intelligence firm Santiment, illustrating Shiba Inu’s trajectory over the past month.
#ShibaInu | In July, 3.30 trillion $SHIB were withdrawn from known #crypto exchanges, worth around $28 million! pic.twitter.com/k5TWVMVzUh
— Ali (@ali_charts) July 31, 2023
The data from the chart indicates that the circulating supply of Shiba Inu on exchanges decreased from around 87 trillion at the end of June to approximately 83.39 trillion by the end of July. Notably, July 19 witnessed a significant withdrawal, with at least two trillion SHIB tokens leaving exchanges.
Typically, large investors, including whales and sharks, withdraw their tokens from exchanges when they plan to hold them for an extended period. These tokens are then moved to cold wallets, reducing the selling pressure on the market and potentially causing the price to rise over time. The substantial amount of SHIB leaving exchanges suggests that investors have a strong inclination to HODL, reinforcing bullish sentiments.
Remarkably, the outflow of Shiba Inu tokens from exchanges has not negatively impacted its price. Shiba Inu has maintained a positive trajectory, with its market cap set to surpass $5 billion, a significant increase from under $4.5 billion in June, according to data from CoinMarketCap.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Furthermore, Santiment highlighted Shiba Inu as a surprise winner during a lackluster trading week. Crypto sharks and dolphins accumulated around 1.1 trillion SHIB tokens, valued at $9 million, within just eight weeks.
It is still too early to say whether Shiba Inu will continue to be a bullish investment. However, the recent developments are certainly encouraging, which suggests that the token has the potential to grow in value over the long term, as investors continue to show confidence in the token’s potential.
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