Amid widespread selling across the cryptocurrency market, Shiba Inu has demonstrated resilience in on-chain metrics, indicating potential market demand despite weak price movements. The reduction in SHIB supply on exchanges suggests a continued appetite among buyers.
SHIB’s Exchange Holdings Experience Significant Decline
According to data from CryptoQuant, the total amount of Shiba Inu held on cryptocurrency exchanges decreased to approximately 85 trillion SHIB as of October 31. This drop from the previous 87 trillion SHIB range reflects a reduction in the quantity available for sale in the market.
Shiba Inu, a meme coin known for its community-driven nature on the Ethereum network, has shown that some investors continue to accumulate SHIB despite the broader market’s downturn.
CryptoQuant data reveals a decline in exchange reserves to 85 trillion SHIB, indicating a reduction in the number of tokens available for sale.
Negative Net Flows Highlight Buyer Activity
Additionally, Shiba Inu’s net exchange flow turned negative during this period. Daily data recorded a negative net flow of 61.36 billion SHIB, pointing to more tokens being withdrawn from exchanges than deposited.
Over the last 24 hours, exchange reserves fell by approximately 0.007%. This persistent negative net flow suggests that some investors prefer holding their SHIB assets off exchanges, reflecting continued buying interest amidst cautious market sentiment.
Negative net flows of 61.36 billion SHIB signal a resurgence in demand, with buyers actively participating in the market.
Recovery Sentiments in the Market
Recently, Shiba Inu has fallen short of the expected upward breakouts, leading to increased investor skepticism. Nevertheless, the lowered exchange supply could lay the groundwork for a recovery not yet visible in pricing.
Should buying continue, the total exchange reserve could potentially dip to 84 trillion SHIB in the short term. This prospect positions itself as a key indicator of strengthening demand within the SHIB ecosystem, despite prevailing selling pressures.
