In a notable development, Shiba Inu’s reserves on exchanges have hit a two-year low after free-falling for the entire period since 2022. Data sourced from CrypytoQuant revealed that the exchange reserve of the popular token currently stands at roughly $156 trillion. At the beginning of this year, the figure stood at around $165 trillion, down by $9 million in just four months.
On the other hand, the price of SHIB posted a notable uptick, suggesting a positive market response to the reduced exchange supply. Typically, a decrease in exchange reserves is interpreted as a bullish signal in the crypto market, indicating that holders are moving their tokens to private wallets. This can imply a long-term holding strategy and a belief in the future appreciation of the asset. The decrease in available supply on exchanges can lead to an increase in the price, as the law of supply and demand comes into play.
However, this trend can also be a double-edged sword. While a lower supply in exchanges generally points to bullish sentiment, it can also mean less liquidity, which might lead to higher volatility in the token’s price. Moreover, if the market sentiment changes, the reintroduction of SHIB tokens to the exchanges could lead to rapid price declines.
It’s important to note that while such metrics are useful, the cryptocurrency market is influenced by a wide array of factors, including regulatory news, technological advancements, and broader economic conditions. Therefore, stakeholders in the SHIB market should consider a holistic view of the market before making investment decisions.
Robinhood Adds Shiba Inu, AVAX, & COMP for NY Traders
Meanwhile, the Robinhood app has expanded its cryptocurrency offerings to include Shiba Inu, Avalanche [AVAX], and Compound [COMP] for its New York users, who now can effortlessly buy, sell, and trade these popular crypto assets. The announcement provides an exciting opportunity to diversify users’ portfolios with these trending cryptocurrencies.
Attention New York. Shiba Inu ($SHIB), Avalanche ($AVAX) and Compound ($COMP) are now available for New York State residents! Buy, sell and trade your favorite crypto assets on the Robinhood app.
Amidst the update, Robinhood executed a colossal transaction, shuffling a staggering 3 trillion Shiba Inu tokens, stirring significant buzz within the cryptocurrency community.