Data shows metrics related to Shiba Inu have seen rapid growth alongside the meme coin’s 34% surge, a potential sign that FOMO is developing among investors.
Shiba Inu Has Seen An Uptick In Activity With Its Latest Rally
In a new post on X, the analytics firm Santiment has discussed how the various indicators related to Shiba Inu have looked while its price has shot up 34% over the past week.
There are three on-chain metrics of interest here: Volume, Circulation, and Whale Transaction Count. The first of these, Volume, tracks the total amount of SHIB involved in trades on the major exchanges every day. This indicator naturally reflects how intense the investors’ trading interest in the coin is.
Circulation also relates to activity, but it’s not restricted to exchanges. This metric measures the total number of unique tokens of the asset participating in transactions on the network. Whenever the Volume spikes without a corresponding spike in this indicator, it means that the trading activity around the meme coin is potentially coming from wash trading.
The last indicator, the Whale Transaction Count, tells us about how many transactions valued at more than $1 million are being executed on the Shiba Inu network every day. Generally, only the whale entities are capable of making such large single-transfer shifts, so this metric reflects the activity that the large hands of the market are participating in.
Now, here is the chart shared by the analytics firm that shows the trend in these three SHIB on-chain metrics over the last few months:
As displayed in the above graph, all three of these Shiba Inu indicators have registered a sharp uptick alongside the latest price surge, implying that activity as a whole has spiked on the network. Generally, a rise in activity is a good sign whenever rallies occur, as it suggests investors are getting drawn to the coin. It’s usually the influx of traders that provides the fuel that price moves like these need to keep going.
The latest rise in the SHIB metrics, however, is a bit extreme, potentially indicating that traders are getting too excited too quickly. Santiment has also pointed out that social media discussions related to the coin have spiked at the same time, lending further credence to the fact that the investors are feeling FOMO.
Cryptocurrency markets have historically tended to move against the expectations of the majority, so when the crowd shows this much hype, a top can become probable to take place.
“In order for the #13 ranked market cap to surpass its $0.000043 year-high made back in February, traders should wait for the high bullish narratives to calm down slightly,” notes the analytics firm.
SHIB Price
After showing a 14% continuation to its latest run during the last 24 hours, Shiba Inu has broken past $0.0000195.
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Keshav Verma
https://www.newsbtc.com/shiba-inu/shiba-inu-bullish-on-chain-watch-social-media-fomo/
2024-09-28 02:00:19
