According to recent data, the supply of SHIB ($0.00) held across all exchanges has plummeted to an all-time low, dropping to 96.6 trillion SHIB from 135.4 trillion SHIB in January 2025. A year ago, in February 2024, exchanges held approximately 165.8 trillion SHIB, and in April 2022, that number reached nearly 200 trillion, accounting for almost half of the circulating SHIB supply.

Why Are Investors Withdrawing SHIB?

The ongoing decline in SHIB reserves on exchanges coincides with a significant price drop. Since December 2024, SHIB has lost more than 60% of its value, falling from $0.0000329 to $0.000013 at the time of writing. One likely reason for this withdrawal trend is growing investor confidence in SHIB’s long-term potential. Following the crypto mantra, “Not your keys, not your coins,” investors have moved their SHIB into cold storage rather than leaving them on exchanges.

^{Source: TradingView}

A recent security breach at the Bybit exchange, where hackers stole over $1 billion worth of Ethereum, has raised concerns about exchange vulnerabilities. Many SHIB holders, fearing similar attacks, have stored their assets in private cold wallets for enhanced security.

SHIB Burn Rate Surges 49,552%

While SHIB reserves on exchanges hit a record low, another critical metric—SHIB’s burn rate—spiked dramatically. Over the past 24 hours, the burn rate surged by an astonishing 49,552%, permanently removing 13,290,880 SHIB from circulation, according to data from Shibburn.

An anonymous whale contributed significantly to this burn, sending 12,131,978 SHIB to an unspendable blockchain wallet in a single transaction. On Friday, Shibburn reported a similar five-digit burn rate increase, though it was about half as large at 27,660%. That day, the SHIB community burned 503,305,764 SHIB, with 459,294,504 SHIB destroyed in just one transfer.

Related article: SHIB Burn Rate Skyrockets 49,552% as Millions of Tokens Are Destroyed

As investors continue withdrawing SHIB from exchanges and the burn rate accelerates, the Shiba Inu ecosystem is undergoing notable shifts. Investors and traders are now closely monitoring whether these factors will contribute to a price recovery or signal further changes in the SHIB market.

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