A significant drop in exchange reserves indicates that whales are accumulating shib and moving it to cold storage, reducing the available supply. combined with a substantial increase in the burn rate, this points towards a potential liquidity crunch and a bullish price movement if demand remains steady or increases.
The data comes from whale scan, a reputable on-chain analytics platform, and is corroborated by information on the burn rate from shibburn. the correlation with bitcoin's performance also adds a layer of credibility to the potential price impact.
The reduction in supply due to whale accumulation and increased burning, coupled with positive market sentiment driven by bitcoin's performance, creates a strong bullish signal for shib. the surge in the futures market further supports the possibility of sustained price action.
While the whale accumulation and burning are ongoing, the immediate impact on price is likely to be felt in the short term as the reduced supply interacts with current market demand. the longer-term impact will depend on sustained burning and ecosystem developments.
Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. The Shiba Inu ecosystem is likely to start seeing signs of a liquidity crunch as whales backing the asset are now on a buying spree. Data shared by the analysis platform Whale Scan on X confirmed that the exchange reserve for SHIB has hit a record low. Advertisement Shiba Inu at risk of liquidity crunch Per the Whale Scan data , Shiba Inu left on exchanges have now hit a record low of 80,900,000,000,000 Shiba Inu. The platform pointed out that while "weak hands" are busy watching the charts, whales are moving millions into private cold storage. This has hastened the fact that the SHIB supply is drying up. To further buttress the emerging liquidity shift, it pointed out the Shiba Inu burn rate that has jumped by 274% thus far this week. While the current reading shows a 100% drop, per Shibburn data, the week-to-date difference remains positive. 🚨 SHIBA INU WHALE ALERT 🚨 Exchange reserves for $SHIB just hit a RECORD LOW of 80.9 Trillion. 📉 While the "weak hands" are watching the charts, whales are moving millions into private cold storage. Supply is drying up. Burn rate is up 274% this week alone. 🔥 Is the SHIB… pic.twitter.com/ZSYcC97XO3 — Whale Scan (@WhaleScan) March 5, 2026 SHIB whale actions have recorded crucial shifts thus far this year, with most trends rarely turning into price growth. Retail investors holding Shiba Inu are always watching out for potential breakout catalysts. However, each burn rate and SHIB open interest twist has always been impacted negatively by broader market trends. With limited product releases, the new liquidity crunch might become the next major tailwind to watch for the meme coin. SHIB and Bitcoin correlation Some analysts believe the fate of Shiba Inu is in part tied to the long-term performance of Bitcoin. You Might Also Like Wed, 03/04/2026 - 13:18 Shiba Inu Price Soars 6%, With Burn Rate up 53,954% By Caroline Amosun As of writing time, Bitcoin was trading at $72,821.22, up by 2.93% in 24 hours and lifting market sentiment. This sentiment now has a ripple effect on Shiba Inu, whose price has jumped by 2.56% to $0.00000564. Should this correlation grow stronger, Shiba Inu may flip Toncoin (TON) in the short term and possibly return to the top 20 list of assets in the long term. The 666% surge in the Shiba Inu futures market has set the stage for a potential sustained price action moving forward. #Shiba Inu