Shiba Inu (SHIB), worst Q2 performance ever... What's the direction for July amidst exchange withdrawals and shrinking activity?

▲ Shiba Inu (SHIB)/ChatGPT generated image

Shiba Inu (SHIB) plunged 22% in a month, revealing the unstable side of the memecoin market. While large holders' withdrawals from exchanges fueled hopes for a rebound, slowing burn rates and shrinking network activity are further increasing market caution.

According to cryptocurrency media outlet Benzinga on July 1 (local time), Shiba Inu has fallen by about 20% over the past month. However, despite sluggish network activity, it regained its position among the top 30 cryptocurrencies by market capitalization. The simultaneous occurrence of price weakness and rank recovery has led to mixed interpretations among investors.

According to Arkham Intelligence data, investors withdrew approximately 2.6 trillion SHIB from centralized exchanges like Binance and Kraken on June 30. This trend of large holders withdrawing from exchanges continued for a month. The market anticipated that the outflow of assets from exchanges could reduce selling pressure.

However, Shiba Inu's price movement remained weak. Shiba Inu recorded its worst-ever Q2 performance, falling 29.5% in the second quarter. The decline in June alone reached 24%. While the fact that July's returns have been positive for four consecutive years fueled expectations for a rebound, there is insufficient evidence to conclude a bullish reversal based solely on exchange withdrawals.

Burn activity, which supported supply reduction, also lost momentum. According to Shibburn data, the burn rate increase over the past month was only 1%. Approximately 410.8 trillion SHIB have been removed from circulation to date, accounting for about 41% of the total supply. The burn mechanism, which once fueled hopes for price increases, has recently failed to generate strong enough momentum to move the market.

The slowdown in network activity is even more pronounced. According to Shibarium data, daily transaction counts have fallen to approximately 1,280. Compared to the peak of over 3 million transactions per day in 2025, ecosystem usage has significantly contracted. While exchange withdrawals and seasonal rebound expectations remain, sluggish burn rates and a sharp decline in transaction activity remain a heavy burden on the Shiba Inu rebound narrative.

[Key Summary of Article]

-Shiba Inu plummeted 22% in a month, recording a 29.5% drop in Q2 and 24% in June.

-On June 30, approximately 2.6 trillion SHIB were withdrawn from centralized exchanges, raising hopes for a rebound.

-The burn rate increase was only 1%, and Shibarium's daily transaction count fell to approximately 1,280, highlighting a slowdown in ecosystem activity.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*