Shiba Inu saw a large wallet transfer after 125.33 billion SHIB left a BitGo-linked address. The tokens were worth about $678,060 at the time. Arkham data showed they moved to a newly created wallet.
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The receiving address had no earlier on-chain activity before the transaction, according to Arkham. That history indicates the wallet was newly created before the transfer. It still held the entire 125.33 billion SHIB balance before publication.
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Why Did 125B Shiba Inu Leave a BitGo-Linked Wallet?
The identity of the wallet owner remains unknown, and the purpose of the transfer has not been disclosed. Moving funds from a BitGo-related address does not necessarily indicate a long-term holding strategy. The owner may choose to move funds to another wallet at any time.
This movement comes amid a series of big movements of Shiba Inu tokens in recent days from wallets that relate to BitGo. Early this month, a Shiba Inu whale had moved 600 billion SHIB to BitGo. Another transfer came a few days later, sending 408 billion SHIB to the platform.
These movements attracted more focus on potential selling because of big movements toward the platform.
However, the last movement took place in the other direction. It marks a shift from the recent trend of big wallet movements related to BitGo. 125.33 billion SHIB moved from a BitGo-associated wallet to a new wallet address.
What Is Driving Shiba Inu Exchange Outflows?
Exchange data also showed net Shiba Inu outflows during the past 24 hours. According to CryptoQuant data, 425.51 billion SHIB was withdrawn, while 269.89 billion SHIB was deposited. This gave an outflow of about 160.06 billion SHIB.
Even with the stated withdrawals, exchanges still maintain a large number of Shiba Inu tokens. Approximately 86.97 trillion SHIB is currently held on exchanges, according to the available data.
This constitutes roughly 14.7% of the total supply of the token; hence, a large number of SHIB tokens are on exchanges.
With the high numbers of SHIB on exchanges, the level of SHIB liquidity available for trading is also high.
However, with the current withdrawal activities, more tokens have been removed from exchanges than those added on exchanges in the period under observation. No specific reason for the withdrawals is given.
Why Is Shiba Inu Facing Ranking Pressure?
In addition, Shiba Inu also faces pressure in terms of cryptocurrency rankings. The SHIB token ranks 30th by market capitalization with about $2.96 billion. Bittensor (TAO) ranks 31st with a market capitalization of about $2.86 billion.
Hence, the difference in market capitalization between the two cryptocurrencies is about $100 million, giving only a small gap in terms of their reported market capitalization.
At press time, SHIB trades at $0.000005035, down by 2.37% in the last 24 hours. TAO lost about 8% in the same duration.
This recent Shiba Inu withdrawal comes as part of an ongoing trend of SHIB exchange outflows. However, there is no evidence yet on whether the wallet holder intends to sell, transfer, or hold the tokens.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
