Shiba Inu's Shifting On-Chain Dynamics and Reduced Exchange Liquidity: A Deep Dive into Accumulation-Driven Sentiment and Price Resilience

The Shiba Inu (SHIB) ecosystem has entered a critical phase marked by structural shifts in on-chain activity, reduced exchange liquidity, and aggressive accumulation by large holders. These dynamics, observed in late 2025 and early 2026, suggest a maturing market structure where institutional and whale-driven behavior increasingly dictates price action. This analysis explores how these factors are reshaping investor sentiment and positioning SHIB for potential resilience amid broader market volatility.

Whale Accumulation and Supply Concentration

According to data from Santiment, the top 10 whale wallets controlled approximately 62.65% of the total SHIB supply as of early January 2026, with the largest wallet alone holding 41% of the token's circulating supply. This concentration reflects a strategic shift toward long-term accumulation, particularly during a prolonged downtrend from October through December 2025. Whale activity intensified in December 2025, with 80 trillion SHIB withdrawn from exchanges, signaling a move toward self-custody and reducing on-chain liquidity by nearly 22% since late 2025.

The implications of this accumulation are twofold. First, reduced liquidity means even modest buying pressure can drive sharper price movements, as seen in SHIB's 13% price jump in early January 2026, which was attributed to whale-driven supply tightening rather than retail demand. Second, the top 100 addresses now control over 57% of the total supply, with newly formed whale wallets further centralizing ownership. This trend underscores growing confidence in SHIB's long-term utility, particularly as the Shiba Inu ecosystem expands through decentralized applications and governance initiatives.

Exchange Liquidity and Token Burn Dynamics

Exchange liquidity for SHIB has contracted sharply in late 2025, driven by large-scale outflows. On December 31, 2025, a single withdrawal of 204 billion SHIB moved tokens from centralized exchanges to self-custody wallets, following a similar outflow of 125.9 billion SHIB on December 20. These movements, coupled with a 1,993% spike in token burns, removed over 10 million SHIB from circulation by early 2026.

The burn rate surged dramatically during the end-of-year period, with a 3904.47% increase in 24 hours on December 29, 2025, and a subsequent 10,731% spike on January 1, 2026, erasing over 173 million SHIB from the total supply. These burns, including a single transaction wiping 171.68 million SHIB, indicate coordinated efforts by both retail and institutional holders to reduce supply and counterbalance bearish sentiment. The shrinking supply base, combined with reduced exchange liquidity, creates a scenario where SHIB's price may exhibit greater resilience to short-term selling pressures.

Global Liquidity Trends and Institutional Interest

Broader macroeconomic factors also support SHIB's trajectory. Global M2 money supply expanded at an 8% year-to-date pace through October 2025, aligning with SHIB's price movement and suggesting potential for further upward momentum. This liquidity expansion, coupled with the proposed Shiba Inu ETF filing, has attracted institutional interest, signaling a shift toward mainstream adoption.

Meanwhile, SHIB's price action in late December 2025 reflected consolidation between $0.0000083 and $0.0000089, despite a 111% increase in whale transactions. This lack of immediate breakout highlights the patience of large holders, who appear to be prioritizing supply control over short-term volatility. However, the 13% price jump in early January 2026 demonstrates that accumulated pressure can materialize rapidly when liquidity conditions tighten further.

Conclusion: Accumulation as a Catalyst for Resilience

Shiba Inu's on-chain dynamics in late 2025 and early 2026 reveal a market increasingly shaped by whale-driven accumulation, token burns, and reduced exchange liquidity. These factors collectively create a structural bias toward price resilience, as thinner liquidity amplifies the impact of buying pressure and supply reduction. While the token remains in a consolidation phase, the aggressive accumulation by top holders and institutional-grade burns suggest a potential inflection point for SHIB's price trajectory. Investors should monitor further whale activity and burn rates, as these metrics will likely dictate the next phase of SHIB's market behavior.