The Shibarium Layer-2 upgrade could be launched any day now, and it seems some major SHIB players are anticipating the launch. More than $28 million in SHIB tokens were withdrawn from major crypto exchanges in the just-ended month of July, according to on-chain data.
Mass withdrawals indicate investor interest in Shibarium
According to facts shared on Twitter by crypto analyst Ali Martinez, backed by on-chain chart data from IntoTheBlock, approximately 3.30 trillion SHIB were withdrawn from well-known crypto exchanges in July, the highest SHIB withdrawal rate in recent months. The chart’s data also shows that the token’s circulating supply within exchanges fell from 86.69 trillion to around 83 trillion by the end of the month.
July 19 saw the largest withdrawal from exchanges, with over two trillion tokens ending up in unknown wallets. According to on chain facts from @WhaleAlert, an Ethereum whale transferred 2.4 trillion SHIB tokens worth $18.7 million from Binance.US to an unknown wallet. With the token’s price up 10% since then, the whale’s SHIB holding is now valued at over $20 million.
These massive SHIB withdrawals can be traced back to the announcement of the Layer 2 blockchain, Shibarium, which is expected to help minimize gas costs and increase blockchain transaction speeds.
Token price falls to $0.00000821 | Source: SHIBUSD on Tradingview.com
While there is no official launch date for Shibarium yet, the high number of withdrawals likely indicates that SHIB investors are easing the selling pressure and want to keep their tokens in private wallets in hopes of what Shibarium’s launch might bring.
Stock market withdrawals reduce selling pressure on SHIB
When SHIB is withdrawn from exchanges, it cannot be sold easily. This reduces SHIB’s available supply for sale, putting upward pressure on the price. When whales transfer such large amounts of money internally, it often results in huge price changes and an increase in interest from other investors. This fit of withdrawal to self-preservation shows the strength of the SHIB community and their faith in SHIB’s future.
The meme-inspired token has gained quite a bit of community and has brought profits to the entire crypto industry over the past two weeks. The launch of Shibarium is expected and SHIB holders want to make sure they take advantage of everything the new scaling solution has to offer.
At the time of writing, SHIB’s market cap is approaching $5 billion after recently taking the 14th position by market cap. The meme coin is trading at $0.000008314 and is up 7.55% in the past seven days.
Featured image from iStock, chart from Tradingview.com