Data shows that as the price of meme coins increased by 34%, the relevant data of Shiba Inu coins also increased rapidly, which may reflect the beginning of FOMO (fear of missing out) among investors.
Shiba Inu Coin has seen an increase in recent market activity
Analytics firm Santiment published a post on the X platform analyzing the performance of relevant on-chain indicators as the price of Shiba Inu Coin rose 34% over the past week.
There are three main on-chain metrics worth noting: trading volume, circulation, and the number of large transactions. First, trading volume reflects the total amount of SHIB traded on major exchanges every day, which directly shows how strong investors' interest in this token is.
Secondly, circulation, while also related to activity, is not limited to data from exchanges. It measures the number of unique tokens that are trading on the network. If trading volume increases but circulation does not rise in tandem, it may mean that there is a false component in the trading activity of meme coins.
Finally, the number of large transactions reflects the number of transactions worth more than $1 million per day on the Shiba Inu network. These large transfers are often made by "whales" - large investors or institutions, so it reveals the movement of large funds in the market.
However, the latest rise in the SHIB indicator is a bit too dramatic, which may indicate that traders are too excited. Santiment also mentioned that social media discussions related to Shiba Inu Coin have also increased significantly, further confirming that investors are feeling FOMO.
Historically, cryptocurrency markets tend to move in the opposite direction of popular expectations, so when everyone shows this much hype, it could mean a top is about to be reached.
“For SHIB, ranked 13th by market cap, to surpass its yearly high of $0.000043 reached in February, traders should wait until the high has calmed down a bit,” the analytics firm noted.
SHIB Price
In the past 24 hours, the Shiba Inu price has increased by another 14% to break through $0.0000195.
#SHIBA🚀 #美国比特币现货ETF累计净流入创新高 #币安上线CATI #美国8月核心PCE创4月以来新高 #HMSTR开盘
