The Shiba Inu ecosystem is likely to start seeing signs of a liquidity crunch as whales backing the asset are now on a buying spree. Data shared by the analysis platform Whale Scan on X confirmed that the exchange reserve for SHIB has hit a record low.
Shiba Inu at risk of liquidity crunch
Per the Whale Scan data, Shiba Inu left on exchanges have now hit a record low of 80,900,000,000,000 Shiba Inu.
The platform pointed out that while “weak hands” are busy watching the charts, whales are moving millions into private cold storage. This has hastened the fact that the SHIB supply is drying up.
To further buttress the emerging liquidity shift, it pointed out the Shiba Inu burn rate that has jumped by 274% thus far this week. While the current reading shows a 100% drop, per Shibburn data, the week-to-date difference remains positive.
SHIB whale actions have recorded crucial shifts thus far this year, with most trends rarely turning into price growth. Retail investors holding Shiba Inu are always watching out for potential breakout catalysts.
However, each burn rate and SHIB open interest twist has always been impacted negatively by broader market trends. With limited product releases, the new liquidity crunch might become the next major tailwind to watch for the meme coin.
SHIB and Bitcoin correlation
Some analysts believe the fate of Shiba Inu is in part tied to the long-term performance of Bitcoin.
As of writing time, Bitcoin was trading at $72,821.22, up by 2.93% in 24 hours and lifting market sentiment. This sentiment now has a ripple effect on Shiba Inu, whose price has jumped by 2.56% to $0.00000564.
Should this correlation grow stronger, Shiba Inu may flip Toncoin (TON) in the short term and possibly return to the top 20 list of assets in the long term.
The 666% surge in the Shiba Inu futures market has set the stage for a potential sustained price action moving forward.
Source: https://u.today/shiba-inu-whales-trigger-exchange-reserve-drop-to-809-trillion-shib
