Over 125 billion SHIB tokens have exited centralized exchanges in recent days, according to CryptoQuant data.
The withdrawal represents significant reduction in readily available supply on trading platforms.
SHIB currently trades at $0.00000718, down approximately 14% in December and 72% over the past year.
The netflow data shows investors moving substantial holdings off centralized platforms into self-custody wallets.
What Happened
CryptoQuant recorded a netflow of negative 125.9 billion SHIB in recent days.
The withdrawals follow a pattern established earlier this month when over 8 trillion SHIB left exchanges within 24 hours.
A notable whale withdrawal occurred on Dec. 15 when a dormant wallet moved 53.59 billion SHIB from Coinbase after exactly one year of inactivity.
The wallet had previously sold its entire 52 billion SHIB position in December 2024, successfully avoiding the token's 72% decline through 2025.
Its return to the market suggests sophisticated traders view current levels as a potential value floor.
Exchange outflows typically signal one of three scenarios: long-term accumulation, cold storage transfers for security, or internal wallet restructuring by major holders.
The magnitude and consistency of negative netflow suggests genuine accumulation rather than simple wallet management.
Market participants preparing to sell typically increase exchange deposits, not reduce them.
The opposite pattern indicates sellers are becoming scarcer at current price levels.
However, the data presents mixed signals.
Blockchain analytics firm Santiment reported that on Dec. 9, approximately 1.06 trillion SHIB tokens were added to exchange reserves.
The simultaneous inflows and outflows suggest uncertainty among large holders as price struggles.
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Why It Matters
Reduced exchange supply fundamentally alters market structure by removing tokens positioned for immediate sale.
Less available inventory means fewer tokens ready to meet demand surges.
Yet technical indicators show SHIB remains in established downtrend despite flattening momentum.
The token trades below key moving averages with momentum indicators in oversold zones.
SHIB has declined 14.15% in December alone, continuing a pattern of weakness during the final month of the year.
The cryptocurrency lost 29.5% in December 2021, 13.5% in December 2022, and 21% in December 2024.
Only December 2023 provided relief with a 24.6% gain.
Market analysts note the divergence between on-chain activity and price performance.
While network metrics show continued engagement, token value has failed to respond.
The combination of reduced exchange supply and technical compression creates asymmetric risk profiles.
Downside appears limited by exhaustion selling and thin seller presence.
Upside potential increases because less supply stands ready to absorb buying pressure.
However, SHIB requires at least 16.6% gains from current levels to close December in positive territory.
Trading volumes typically decline during holiday periods, making such recovery unlikely.
Twenty-four-hour volume increased 13% recently but remains below $100 million, raising questions about rally sustainability.
The broader meme coin sector faces similar pressure.
Dogecoin has also posted double-digit monthly losses despite limited recovery attempts.
Risk-off sentiment across cryptocurrency markets has pushed investors away from speculative assets toward more established positions.
SHIB holders face a market where strong fundamental activity has decoupled from price action, a pattern that can persist for extended periods before reversing.