The surge in Shiba Inu numbers and whale activity triggered a strong surge in SHIB prices, with bulls targeting another 100% gain in the future.
Highlights
SHIB surged 43% in nine days, driven by strong on-chain activity and an increase in huge transactions.
Derivatives data showed open interest increased 65% to more than $60 million.
The surge in daily trading volume is reminiscent of the 2021 bull run.
The world’s second-largest meme coin, Shiba Inu (SHIB), has once again taken the crypto space by storm, gaining 23% in the past 24 hours to trade near $0.0000191. Interestingly, the SHIB price surge was accompanied by a 240% surge in daily trading volume to over $1.36 billion, reminiscent of the 2021 super bull run.
Shiba Inu's "fear of missing out" breaks out again
Cryptocurrency analytics platform Santiment reports that Shiba Inu has surged 43% in the past 9 days amidst increased on-chain activity. Key indicators behind the surge include a significant increase in trading volume, strong SHIB circulation, and SHIB whale trading volume surging to a 10-week high. In addition, as SHIB's social dominance increases, there is a strong FOMO (fear of missing out) sentiment among traders.
Additionally, Santiment data suggests that a sharp rise in price could lead to a local top. At press time, Shiba Inu is priced at $0.00001901 with a market cap of $11.3 billion, making it the 13th largest cryptocurrency on the market. For SHIB to reach its February high of $0.000043, bulls would need to break through $0.000020 and maintain strong trading volume.
Derivatives data for the world’s second-largest meme coin also showed strong momentum, with open interest surging 65% all the way to over $60 million. Additionally, Coinglass data shows that 24-hour Shiba Inu liquidations have surged to $2.23 million, of which $1.29 million were short liquidations. Additionally, the chart below shows a sharp spike in funding rates, indicating bullish sentiment among SHIB futures traders.
Will the SHIB price increase continue?
As mentioned earlier, if bulls succeed in taking SHIB above $0.20, there is a chance that it could surge by another 100% in just a few weeks. However, investors are curious if the meme coin can replicate the 2021 bull run that saw it surge 45,000% between January and May.
There are calls for Shiba Inu to rise to $1, but this would require an exponential increase in volume. Furthermore, despite the destruction measures, there are still trillions of SHIB in circulation, making such a large-scale rally difficult.
On the other hand, the SHIB ecosystem continues to make progress with the launch of the SHI stablecoin. In addition, the total locked value (TVL) on the layer 2 network Shibarium has surged to a new high of $3.64 million.
