A staggering 3.3 trillion tokens of the meme-inspired cryptocurrency Shiba Inu ($SHIB), worth over $28 million, have been pulled out of centralized cryptocurrency exchanges throughout the month of July in a large-scale withdrawal analysts are seeing as a drop in available supply.
According to popular crypto analyst Ali Martinez, on-chain data shows that last month a whopping 3.3 trillion SHIB tokens were withdrawn from wallets known to belong to cryptocurrency trading platforms.
Martinez’s data was based on a chart from crypto analytics firm Santiment, which reveals that in the closing days of June saw approximately 87 trillion Shiba Inu tokens in circulation on various exchanges. The figure, however, saw a dramatic drop to around 83.39 trillion by the end of July.
Amid the steady outflow, July 19 proved to be a day of noteworthy significance with two trillion SHIB tokens leaving the exchanges. The outflow coincided with the bankrupt crypto lender Voyager selling billions of Shiba Inu tokens in July.
Tokens moving off of cryptocurrency exchanges is generally seen as a positive for the cryptocurrency, as it shows there’s a smaller amount of supply available to meet demand on exchanges. If enough supply is removed from exchanges and demand grows, the price of the cryptocurrency should rise.
As CryptoGlobe reported, the developers behind SHIB have recently rolled out the beta version of the Shibarium bridge, an eagerly awaited test phase that allows the public to give the layer-2 scaling solution a try.
The bridge will allow users to move their assets from the Ethereum network onto Shibarium when it launches, allowing them to take full advantage of the layer-2 scaling solution that is set to remove tokens from circulating to reduce supply and help boost the price.
This is known as a token burning mechanism, in which tokens are sent to wallets that can only receive tokens but not send, also called Dead Wallets.
Earlier this month the native test network of Shibarium, fondly called Puppynet, recorded an impressive tally of over 30 million transactions, emanating from an estimated 17 million wallets. This notable achievement signals the network’s steady march towards a broader release slated for the forthcoming months.
As CryptoGlobe reported, the meme-inspired cryptocurrency has been seeing significant growth over the last few months, to the point that data shows explosive growth of its daily new addresses on the network in the second quarter of the year.
Featured image via Unsplash.