Cryptocurrency exchange Binance published its 43rd Proof of Reserves report, which recorded a major restructuring of users’ portfolios. One of the main surprises, however, was the massive reduction in positions in the Shiba Inu ($SHIB) coin.
In just one month, users’ $SHIB balances fell by 1.101 trillion coins, from 53.547 trillion in May to 52.445 trillion in June.
Moreover, this process was not a local event on one exchange, but part of a global trend. CryptoQuant confirms that total $SHIB reserves on wallets of all trading platforms worldwide fell below the key mark of 81 trillion and now stand at 79.99 trillion tokens.
However, the most interesting part lies in the details: contrary to standard market logic, investors did not wait out the altcoin decline in defensive assets. USDC stablecoin reserves on Binance collapsed by $1.526 billion, while USDT reserves fell by 1.33%.
Where did the trillions of $SHIB go?
The figures in the report directly indicate that free dollar liquidity and funds from stablecoins were redirected straight into the main cryptocurrencies: users’ Bitcoin ($BTC) balances increased by 4.26% (+25,838 $BTC), while Ethereum ($ETH) balances jumped by 10.17% (+382,619 $ETH).
But $SHIB balances declined, and this counter-trend to majors allows for two completely different scenarios:
- Bullish case: Large players are using the local decline to accumulate the asset and withdraw it to non-custodial wallets. This reduces potential selling pressure on exchanges and, if demand rises, could accelerate an upward $SHIB price move.
- Bearish case: The simultaneous exit from $SHIB and stablecoins points to a cyclical shift in priorities, where market participants are locking in losses in order to build positions in $BTC and $ETH. In this context, lower liquidity on trading platforms could lead to a prolonged flat phase.
Bottom line, we see that the market has temporarily cooled toward altcoin speculation and placed a bet on the stability of the major cryptocurrencies. June on-chain data will clarify the real state of affairs — whether the trillions of coins that left Binance settled in long-term holders’ wallets or whether this was simply a basic reduction of Shiba Inu coin positions.
