Shiba Inu Rises 4.4 Percent But Faces Selling Pressure From High Exchange Holdings

Shiba Inu (SHIB) saw a 4.4 percent price increase on Monday, making it the top performer among the six largest cryptocurrencies by market cap. The token traded at $0.00000596 (€0.00000531) at midday, marking its strongest daily performance. Despite this gain, data from Santiment reveals that 88.08 trillion SHIB, worth approximately $525 million, are currently sitting on exchanges. This amount is nearly five times the daily trading volume of $111 million, indicating significant potential selling pressure.

The daily turnover of SHIB represents just 3.2 percent of its market capitalization, highlighting how small buy orders can drive substantial percentage gains. Over longer periods, SHIB has shown mixed performance, with gains of 5 percent over seven days, 10.2 percent over 30 days, and 26.1 percent over 60 days. However, it has lost 53.3 percent over the past year and remains 93.1 percent below its October 2021 record high.

Shiba Inu's price movements are influenced by factors like the balance of tokens on exchanges and the daily burn rate. The project's burn mechanism, ShibTorch, automatically burns SHIB tokens through transaction fees on Shibarium. On October 3, around 20 billion SHIB were burned in a single day, though this represents only a tiny fraction of the circulating supply. At the current burn rate, it would take over 12 years to eliminate the exchange balance and more than 80 years to burn the entire circulating supply.

For investors in Germany, holding SHIB for over a year exempts gains from income tax, with an additional €1,000 exemption limit for private disposal gains. Proper custody and record-keeping are essential, as transferring tokens from an exchange to a personal wallet does not trigger tax events but requires careful documentation for future proof of acquisition.