Shiba Inu Experiences Record-Breaking Token Outflow Amid Crypto Market Doldrums

Shiba Inu (SHIB) has seen an outflow of over 110 billion tokens from exchanges, which could potentially reduce the available selling supply. This development comes as the broader crypto market is experiencing drowsiness and pressure on meme currencies like SHIB.

The exchange balances are a crucial gauge of potential sell-side liquidity, and sustained withdrawals can indicate that holders are willing to hold onto their SHIB for the long-term.

While the reported 110 billion SHIB net outflow by CoinGlass may ease some near-term selling challenges, it does not establish renewed demand or guarantee a price recovery right away.

The Shibarium L2 has continued to burn hundreds of millions of SHIB, according to Mazrael, a longtime contributor to the ecosystem. However, burns alone are unlikely to dictate price direction due to the large overall supply of SHIB.