Schibarium Layer-2 Upgrade Prompts Massive Withdrawals, signalling Investor Interest
As the eagerly anticipated Schibarium Layer-2 upgrade is set to be released, it appears that some major SHIB players are taking steps ahead of the launch. According to on-chain data, over $28 million worth of SHIB tokens were withdrawn from major crypto exchanges in the month of July.
Twitter Krypto-analyst Ali Martinez, supported by on-chain chart data from IntoTheBlock, shared data indicating that around 3.30 trillion SHIB tokens were withdrawn from well-known crypto exchanges in July, marking the highest SHIB withdrawal rate in recent months. The data also showed that the token’s circulating supply on exchanges decreased from 86.69 trillion to approximately 83 trillion by the end of the month.
On July 19th, the largest withdrawal from exchanges occurred, with over two trillion tokens moving into unknown wallets. According to on-chain data 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 having increased by 10% since then, the whale’s SHIB holdings are now estimated to be valued at over $20 million.
These massive SHIB withdrawals can be attributed to the announcement of the Shibarium Layer-2 blockchain, which is expected to help minimize gas fees and increase transaction speeds on the blockchain.
While there is no official launch date for Shibarium yet, the high withdrawal rate likely indicates that SHIB investors are looking to reduce selling pressure and hold their tokens in private wallets, in anticipation of what the launch of Shibarium may bring.
When SHIB is withdrawn from exchanges, it cannot be readily sold, thereby reducing the available supply of SHIB for sale and creating upward pressure on the price. When whales transfer such large amounts into self-custody, it often leads to massive price movements and increased interest from other investors. This frenetic withdrawal into self-custody showcases the strength of the SHIB community and their belief in the future of SHIB.
The meme-inspired token has gained a significant following and has been the leader in the entire crypto industry over the past two weeks. The introduction of Shibarium is eagerly anticipated, and SHIB holders want to ensure they maximize the benefits of the new scaling solution.
At the time of writing, SHIB’s market capitalization stands at nearly $5 billion, as the meme coin recently regained the 14th position by market capitalization. The coin is trading at $0.000008314 and has risen by 7.55% in the past seven days.
Featured image by iStock, chart from Tradingview.com