Shiba Inu is facing a crossroads with two interesting metrics from within its ecosystem. On one side, its layer-2 blockchain Shibarium has just crossed an impressive transactional milestone that points to long-term growth. But on the other side, recent on-chain data suggests that large holders, which are often seen as the backbone of market confidence, are making outflows from their exchanges in what appears to be the biggest whale outflows since March.
Shibarium Reaches New Transaction Record, Whales Exiting
Shibarium, Shiba Inu’s layer-2 network, has now reached a milestone of 1.2 billion transactions. This interesting milestone is relayed through data from the Shibarium explorer website, which shows that the layer-2 network is currently just over the 1.2 billion transaction threshold, with 1,200,301,394 transactions involving 263.3 million addresses.
This transaction count figure signals steady onboarding and sustained blockchain activity since the platform’s launch 19 months ago. The activity is quite notable, especially considering it comes barely five weeks after Shibarium reached the 1 billion transaction mark on April 1. The total block count has also risen beyond 11.3 million, just two months after it first registered 10 million blocks.
However, despite these long-term indicators of network growth, daily usage on Shibarium is slipping. The number of daily transactions dropped below the million mark on May 22, when it logged 1.51 million, and has continued to decline ever since. At the time of writing, the total number of transactions recorded on Shibarium in the past 24 hours was 63,780. This extends its run of lower than 100,000 daily transactions since May 27.
At the same time Shibarium is reaching new milestones, large SHIB holders have started pulling billions of tokens out of their wallets. According to data from IntoTheBlock, whale outflows have risen by an astonishing 992% in just a few days, from 105.39 billion SHIB on June 1 to 2.94 trillion SHIB in the past 24 hours.
Interestingly, the 2.94 trillion SHIB outflow from whale addresses in the past 24 hours is the largest outflow count since March 20. These outflows represent SHIB tokens leaving the addresses of major holders, and can be interpreted as a signal that they are selling or preparing to exit their positions.
Where Does Shiba Inu Go From Here?
Shibarium’s long-term growth shows that Shiba Inu’s ecosystem continues to expand and develop, which is a factor that could be considered bullish for the Shiba Inu price. Yet, the simultaneous withdrawal of nearly 3 trillion SHIB from whale addresses introduces the kind of selling pressure that can erase weeks of progress in a matter of hours.
Unsurprisingly, this outflow from whale addresses has been reflected in the recent price of Shiba Inu. At the time of writing, Shiba Inu is trading at $0.00001284, down by 2.3% in the past 24 hours and 11.12% in the past seven days. Continued outflow from whale addresses could increase the selling pressure on Shiba Inu in the coming days.
