SHIB’s Liquidity Dries Up: Supply Crunch To Boost Price?

Shiba Inu’s centralized exchange drought might serve as the moonshot the SHIB Army had been itching for. Published: October 27, 2025 │ 10:00 PM GMT Created by Kornelija Poderskytė from DailyCoin The mainstream canine coin Shiba Inu (SHIB) has recouped the four-zero price territory after an intense battle with the fifth zero, but the rebound
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Shiba Inu’s centralized exchange drought might serve as the moonshot the SHIB Army had been itching for.

  • Tadas Klimasevskis

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Created by Kornelija Poderskytė from DailyCoin

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The mainstream canine coin Shiba Inu (SHIB) has recouped the four-zero price territory after an intense battle with the fifth zero, but the rebound rally doesn’t seem to be taking off. Usually following in the footsteps of Bitcoin (BTC) & the parent chain Ethereum (ETH) during price rallies, SHIB stayed silent on Monday, while BTC recouped $115.5K.

Shiba Inu’s Exchange Liquidity Hits Four-Year Bottom

While Shiba Inu (SHIB) picked up 1.4% gains to trade at $0.00001059, none of the crucial resistance levels can be restored unless a double-digit percentage rally is whipped up. What’s stopping Shiba Inu (SHIB) from an upward projection? Market watchers are pointing the finger at SHIB’s stagnant trading volumes, barely reaching $200 million per day.

However, the dwindling trading volumes don’t necessarily scream bearish – in Shiba Inu’s case, this has to do with the meme coin’s scarcity on major exchanges (CEXs). Since early 2025, the liquidity crunch has been noticeable. Beginning the year at 140.7 trillion SHIB tokens, now the centralized exchanges (CEXs) had pushed this figure to a four-year low, currently at 82.27T.

Surely, this hints at Shibarium’s decentralized finance (DeFi) crusade to have succeeded on a major scale, as holders decide to switch to non-custodial crypto wallets. Starting at a hefty 999 trillion tokens, the popular meme coin saw years & years of community-enabled token burning initiatives. As a result, SHIB’s current circulation is capped at 585.225 trillion tokens.

Will SHIB’s Price React To Sky-High Scarcity Levels?

At the current moment, Shiba Inu coin’s (SHIB) technical price structure nears a break point at $0.00001068, which stands for the red-label Bollinger Band (BOLL). If sustained above, a close above could as well pave the way to $0.00001200, a mid-point Fibonacci level that would restore Shiba Inu’s price levels lost during the drastic October 11, 2025 market dip.

A full retracement of the damage caused by the $19 billion market wipe-out would put SHIB at $0.000013, where the majority of SHIB tokens lie. This resistance level mostly plays a decisive part in Shiba Inu’s (SHIB) broader bounce back rallies, but not without sufficient whale support & consistent trading volumes. Now, the whales are bullish with the CMF flashing 0.10.

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People Also Ask:

What’s causing the liquidity crunch for SHIB on exchanges?

SHIB exchange reserves have plunged to all-time lows, with only about 84 trillion tokens left on platforms like Binance—down 86.5% from peaks—as holders shift to self-custodial wallets amid rising DeFi adoption and Shibarium burns.

How low are SHIB reserves right now?

Reserves sit at around 84T SHIB, a sharp drop from 140T during the 2024 bull run, with recent outflows exceeding 142B tokens in a single day, signaling strong HODLing despite price dips.

Is this crunch bullish or bearish for SHIB’s price?

Mostly bullish—reduced supply eases sell pressure and could spark a surge if demand rises, though low liquidity risks volatility; SHIB’s up 0.91% today but testing $0.0000119 support.

What role do token burns play in this?

Shibarium has burned over 410T SHIB since 2021, with 5B more in October alone, tightening overall supply alongside exchange outflows and amplifying scarcity for potential price pumps.

What’s next for SHIB amid this crunch?

If outflows continue and demand picks up via ShibaSwap or ecosystem growth, analysts eye $0.000013+ by Q4 2025; watch for volatility if inflows like the recent 504B token spike reverse the trend.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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