Shiba Inu (SHIB), Worst Q2 Performance Ever... What's the Direction for July Amid Exchange Withdrawals and Weakened Activity?

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Shiba Inu (SHIB) plunged 22% in a month, revealing the volatile nature of the memecoin market. While large holders' withdrawals from exchanges fueled hopes for a rebound, slowed burning and weakened network activity are further increasing market caution.

According to crypto media outlet Benzinga on July 1 (local time), Shiba Inu has fallen by approximately 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.

Data from Arkham Intelligence shows that investors withdrew approximately 2.6 trillion SHIB from centralized exchanges such as Binance and Kraken on June 30. The 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 trend remained weak. SHIB recorded its worst Q2 performance ever, falling by 29.5% in the second quarter. The decline in June alone reached 24%. The fact that July's returns have historically been positive for four consecutive years raised hopes for a rebound, but exchange withdrawals alone are insufficient evidence to conclude a bullish reversal.

Burning activity, which supported supply reduction, also lost momentum. According to Shibburn data, the burn rate increase over the past month was only 1%. To date, approximately 410.8 trillion SHIB have been removed from circulation, accounting for about 41% of the total supply. The burning mechanism, which once fueled price increase expectations, 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 decreased to approximately 1,280. This figure represents a significant contraction in ecosystem usage compared to the peak of over 3 million daily transactions in 2025. While exchange withdrawals and seasonal rebound expectations remain, sluggish burning and a sharp decline in transaction activity pose a heavy burden on the Shiba Inu rebound theory.

[Article Summary]

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