SHIB's Outflow Surge Masks Bigger Inflow Pressure

Shiba Inu's recent outflow surge has been met with excitement among investors, but a closer look at exchange-flow data reveals a more nuanced picture. SHIB's seven-day average exchange outflow jumped 121.26% in 24 hours to roughly 579 million tokens, which could indicate that holders are moving coins away from trading platforms. However, this increase in outflows was overshadowed by an even larger surge in inflows, with the seven-day average rising 182.3% to about 1.68 billion tokens.

Despite the outflow spike, total inflows reached 318.28 billion SHIB against 231.74 billion in outflows, leaving a positive netflow of roughly 86.53 billion SHIB. This means that more SHIB is entering trading venues than leaving them, increasing immediately liquid supply and exchange reserves.

The pattern of increased inflow pressure follows similar trends seen in late August, where SHIB recorded roughly 145.9 billion tokens in positive exchange netflow after another session approached 261.7 billion. This time around, the token is trading near $0.00000520, down almost 4% on the daily candle.

Experts warn that until the balance flips negative and more SHIB is leaving exchanges than entering them, the latest outflow surge should not be read in isolation. The burn narrative also offers little immediate relief, with just 3.59 million SHIB being burned in 24 hours earlier this week, worth only about $18 at the time.