Shiba Inu's exchange reserves have declined to their lowest level since 2023, a development that some analysts interpret as a potential precursor to price gains as the cryptocurrency trades above $0.000012 for the first time in weeks. Data from blockchain analytics platform CryptoQuant shows 84.55 trillion tokens remain on exchanges, valued at approximately $998 million, marking a sustained withdrawal pattern that began earlier this year.
What to Know:
- Shiba Inu exchange reserves fell to 84.55 trillion tokens, the lowest amount held on crypto exchanges since 2023
- CryptoQuant data reveals consistent outflows throughout 2025, with tokens moving to self-custody or staking arrangements
- The cryptocurrency has never recorded a negative October since its launch, maintaining profitability even during the 2022 bear market
Supply Dynamics and Market Implications
Crypto analyst Zayn highlighted the reserve decline on social media platform X, suggesting the meme coin may be positioning for what traders call "Uptober," a term referencing October's historically positive performance for the token. The exchange reserve metric tracks the total supply of tokens held on trading platforms, serving as an indicator of potential selling pressure.
CryptoQuant's data reveals the downtrend persisted through most of 2025, with substantial outflows removing tokens from exchange wallets.
A brief reversal occurred in September when Shiba Inu's price attempted to break above $0.0000146 but faced rejection. That failed breakout triggered a temporary increase in reserves as short-term holders moved tokens back to exchanges.
The outflow pattern resumed in recent days. When tokens leave exchanges, they typically move into self-custody wallets or staking protocols, reducing the immediate supply available for trading. This dynamic affects the relationship between supply and demand on trading platforms.
Technical Position and Historical Patterns
The reduction in available supply on exchanges decreases potential selling pressure, as fewer holders can quickly liquidate their positions. Historical data suggests significant drops in exchange reserves often precede accumulation phases. These accumulation periods have previously established foundations for price rallies, according to market observers.
Zayn noted Shiba Inu currently trades below a descending resistance trendline, characterized by lower highs and higher lows since May 2025. A break above this resistance level would confirm a bullish outlook, analysts say.
Shiba Inu's October performance record adds context to current price expectations.
Since the token's launch, it has never closed October with losses. During the 2022 bear market, when most cryptocurrencies faced sustained declines, Shiba Inu still finished the month with gains.
Exchange reserves represent the total quantity of a cryptocurrency held in wallets operated by trading platforms. Lower reserves indicate tokens are being moved off exchanges, typically into private wallets or staking arrangements. Staking involves locking tokens in a protocol to support network operations, often generating rewards for participants. A bear market describes an extended period of declining prices across the cryptocurrency sector.
The token traded at $0.00001261 at press time, representing a 2.4% increase over 24 hours. Market participants are monitoring whether the current reserve depletion pattern will follow historical precedents.
Final Thoughts
The combination of depleting exchange reserves and October's historical performance drives analyst confidence in potential price movement. Whether the pattern repeats remains uncertain, but the supply dynamics present conditions that have previously supported rallies.