Large SHIB Transfer from Coinbase-Linked Wallet Reduces $2.3M Exchange Liquidity

A significant movement of Shiba Inu (SHIB) tokens was observed on August 26, 2025, as a major U.S. cryptocurrency exchange, identified via on-chain analysis as Coinbase-linked, transferred approximately 189,048,016,126 SHIB to a previously unused Ethereum wallet. The value of this transfer was estimated at around $2.3 million, based on market conditions at the time of the transfer [1]. The transfer occurred over a 24-hour period and was structured in repeated chunks of roughly 15.3 billion SHIB each, valued at approximately $190,000 per transfer. This pattern suggests a coordinated effort to consolidate a large volume of SHIB into a single off-exchange wallet [1].

The transaction has raised questions about its potential market impact. As the tokens were moved off the exchange, the immediate sell-side liquidity was reduced by about $2.3 million. This outflow could signal a strategic withdrawal of SHIB from public trading environments, potentially indicating long-term accumulation or storage in cold custody [1]. However, the move does not necessarily guarantee an upward movement in SHIB’s price. At the time of the transfer, the token was trading within a defined range, with support at $0.00001107 and resistance levels around $0.00001688–$0.00002052 [1]. Analysts have pointed out that while reducing exchange-based supply can affect short-term liquidity, broader price movements depend on overall market demand and sentiment [1].

The destination wallet, which had no prior activity, has not shown any outgoing transactions since the transfer, raising speculation about its custodial status. On-chain intelligence providers such as Arkham have flagged the origin of the tokens as being tied to a Coinbase cluster, while the destination is not linked to any known exchange or public wallet [1]. This lack of activity suggests that the tokens may be held in private custody or cold storage, rather than being immediately liquidated or redistributed [1].

Tracking such whale activity is crucial for market participants seeking to gauge large-scale movements in SHIB. On-chain monitoring tools and block explorers can be used to identify large transfers, while watching labeled clusters from on-chain intelligence platforms helps determine potential origins. Wallet age and subsequent activity are also key indicators of intent, such as whether the funds will remain in long-term storage or be moved back into circulation [1].

Despite the large volume of tokens removed from exchanges, the practical impact on the SHIB market remains limited to a modest reduction in liquidity. There is no indication that this movement will cause a sustained price increase, as the broader market fundamentals, including demand and investor sentiment, will ultimately determine price direction [1].

The event highlights the growing importance of on-chain analysis in understanding crypto market dynamics. As large holders continue to move assets off public exchanges, the market must remain attentive to both the source and destination of such movements. This specific transfer, while significant in size, serves as a reminder that liquidity shifts on exchanges can influence short-term market behavior without necessarily driving long-term price trends [1].

Source: [1] Large Shiba Inu Transfer From Major U.S. Exchange Moves $2.3M to Unknown Wallet, Could Signal Reduced Exchange Supply (https://en.coinotag.com/large-shiba-inu-transfer-from-major-u-s-exchange-moves-2-3m-to-unknown-wallet-could-signal-reduced-exchange-supply/)