After a favorable period in the past months in which Shiba Inu (SHIB) has gained by more than 60%, a recent market turndown has impacted its progression, but not in a measure that should deter potential investors, according to one industry expert.
The SHIB supply on cryptocurrency exchanges has recently experienced a notable decrease, reaching 7.58% on December 12. To provide context, this figure was nearly 9% in June of this year, per a post from crypto analyst Trader Kamikaze on X from December 12.
“Less SHIB on exchanges generally means reduced selling pressure – setting the stage for potential gains.”
Chart of decrease of SHIB supply on crypto exchanges. Source: Trader Kamikaze
Reducing SHIB tokens available on trading platforms and shifting towards self-custody methods is generally considered a positive development for the meme coin’s valuation, as it removes immediate selling pressure. Contrarily, an increasing percentage of SHIB supply on exchanges may indicate a potential correction in the price.
SHIB’s recent achievements
Even amid its recent price decline, SHIB has achieved noteworthy milestones. Shibarium, its layer-2 blockchain solution, has consistently set new records for daily transactions since the start of December, pushing the total network transactions close to the 100 million mark.
Number of SHIB daily transactions. Source: Shibarium
Elsewhere, Binance, the largest cryptocurrency exchange globally, introduced new trading pairs on its spot market on December 13. One noteworthy addition is the trading pair featuring the highly popular Shiba Inu token and the recently introduced stablecoin, First Digital USD (FDUSD), with an impressive capitalization of $1.086 billion.
SHIB price analysis
At the time of press, SHIB was trading at $0.00000944, marking a -1.76% decrease in the past 24 hours, which adds to the further losses in the past 7 days that amount to -7.30%.
On the contrary, this crypto has added 6.15% to its value in the previous month.
SHIB 30-day price chart. Source: Finbold
The recent supply shortage on the exchange markets, coupled with this crypto trading above its 200-day simple moving average and 19 green days in the past month, could mean there is still potential for gains in the near future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
