Shiba Inu has experienced rapid growth, with the meme coin rising by 34%, indicating that investors may be driven by fear of missing out (FOMO).
In a new post on X, the analytics firm Santiment explained that three key on-chain indicators have notably increased alongside Shiba Inu's price rise. The indicators are: volume, trading, and whale transaction count.
Volume tracks the amount of SHIB traded daily on exchanges.
Trading measures the number of unique tokens involved in transactions.
Whale transaction count indicates transactions exceeding one million dollars on the Shiba Inu network.
The sharp rise in these metrics suggests increased activity on the network, which is generally considered a positive sign of attracting investors. However, warnings indicate that this activity may be excessive, as discussions about the coin on social media have also surged, adding further evidence of rising FOMO.
While increased activity is seen as a good indicator for price movements, Santiment cautions that significant market movements often go against the majority's expectations, which could lead to a price peak if this momentum continues.
