New Wallets Trigger Massive Shiba Inu Supply Squeeze

January 12, 2026
New Wallets Trigger Massive Shiba Inu Supply Squeeze

Fresh wallets just hollowed out the Shiba Inu (SHIB) liquidity pool on centralized exchanges. Large-scale investors withdrew approximately 80 trillion tokens since early December. 

Key Points

  • Fresh wallets withdrew 80 trillion SHIB from centralized exchanges since December, removing 22% of available inventory.
  • The aggressive accumulation occurred at an average price of $0.0000085, dropping exchange balances to 290.3 trillion.
  • Analysts at TK Research Trading warn of "supply exhaustion" as trading volume surged 60% against shrinking liquidity.

The movement signifies a strategic tightening of the asset’s floating supply. Market analyst TK Research Trading reported that high-value participants are actively consolidating control of the token’s remaining liquidity. 

Total SHIB balances on exchanges reached 290.3 trillion tokens on Monday. The figure represents a sharp decline compared to the 370.3 trillion recorded on December 5. 

The net outflow accounts for roughly 22% of the exchange supply in just over a month.

The Shiba Inu  Accumulation Report

Buying pressure appears highly coordinated across several major platforms. Fresh wallets with no prior trading history withdrew 82 trillion SHIB from centralized exchanges during the last 60 days. 

New Wallets Trigger Massive Shiba Inu Supply Squeeze
credit: TK Research Trading

The majority of the volume originated from Coinbase. These acquisitions occurred at an average price of approximately $0.0000085.

Withdrawals of this scale account for 28% of the total exchange balance available at the start of the period. TK Research Trading explicitly linked the drain to a potential market squeeze.

“Shiba Inu is showing signs of supply exhaustion with the majority of tokens increasingly controlled by big players,” the TK Research Trading shared. The firm further noted that “exchange liquidity is nearly locked,” creating the conditions for a potential supply shock. 

Related: Dubai Purges Privacy, Stablecoins In Strict New Crypto Laws

Moving assets toward private cold storage suggests a long-term holding strategy by entities seeking to reduce the immediate liquid supply on open order books.

Volume Divergence and Supply Fatigue

Resurgent market activity accompanies the shrinking reserves. Shiba Inu’s 24-hour trading volume surged 59.81% to $98.6 million early morning Monday. Analysts identify a divergence between falling exchange reserves and rising trading volume as a bullish structural signal. 

Demand’s chasing a shrinking pool of liquid assets because nearly 290 trillion tokens now sit in private cold storage. Market participants often view low exchange inventory as a prerequisite for a supply shock. 

Buying pressure is increasing as tokens remain off-exchange. The lack of immediate sell-side liquidity can result in rapid price appreciation. 

The current volume spike confirms that the market’s finding a second wind despite the reduced number of tokens available on centralized venues.

Related: Excluding Bitcoin Now Poses Greater Portfolio Risk Than Volatility: VanEck

Consolidation by Major Entities

The total circulating supply of SHIB stands at 589.24 trillion tokens. Roughly half of that supply currently sits on exchange order books

The withdrawal of 80 trillion tokens creates the potential for heightened price volatility. Shiba Inu’s multi-billion dollar market cap provides enough depth for large moves. However, retail demand’s yet to match the pace of whale accumulation.

Whales are hollowing out the exchange order books. Removing 28% of the liquid supply in two months creates a dry powder keg. 

Tokens moved out of the daily churn of high-frequency trading and into dormant cold storage. A return of retail demand will likely trigger a massive supply shock because 80 trillion tokens are no longer for sale on the open market. 

Frequently Asked Questions

A coordinated accumulation spree by "fresh wallets" (new addresses) has removed approximately 80 trillion SHIB tokens from centralized exchanges since early December. This massive outflow, largely originating from Coinbase, has reduced the available exchange supply by 22%, creating a potential liquidity crisis or "supply shock" where demand outstrips tradable inventory.
As of Monday, total SHIB balances on exchanges have dropped to 290.3 trillion tokens. This is a sharp decline from the 370.3 trillion recorded on December 5. The rapid reduction suggests that large entities are moving assets into private cold storage for long-term holding.
On-chain data indicates that the recent 80 trillion token accumulation occurred at an average price of approximately $0.0000085. This suggests that high-value participants view this price level as a strategic entry point before a potential market squeeze.
Shiba Inu is currently experiencing a bullish divergence: trading volume has surged nearly 60% to $98.6 million while exchange reserves are plummeting. When buying pressure chases a shrinking pool of liquid assets, it often creates conditions for rapid price appreciation due to the lack of immediate sell-side liquidity.
YONA GUSHIKEN

YONA GUSHIKEN

Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.


Yona has no crypto positions and holds no crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.