Shiba Inu has seen an impressive 43% surge in value over the past nine days. According to data from Santiment data, Shiba Inu’s on-chain activity has spiked significantly, surpassing that of many altcoins and other meme coins.
Whale transactions, trading volume, and token circulation have reached 10-week highs, while the coin’s social dominance has also risen. This surge in interest and activity has been attributed to the “fear of missing out” (FOMO) among traders, which may indicate the formation of a local price top.
Shiba INU’s Impressive Price Actions
Currently, Shiba Inu is trading at $0.00001912, up by nearly 17% in the past 24 hours. Its global market cap has also risen by 17% to $11.27 billion.
Trading volume has skyrocketed, increasing by more than 150% in just one day. This remarkable performance coincides with the ongoing rally in meme coins, with many meme assets experiencing price gains of over 5% within the same period.
The increase in Shiba Inu’s token-burning mechanism is strongly related to the token’s price rise. According to recent data, the coin’s burn rate has increased dramatically to 33,800% each day, and around 2 billion SHIB tokens have been transferred to null addresses, taking them out of circulation. The goal of this burning process is to decrease the massive amount of Shiba Inu tokens, which could result in additional price hikes if demand rises or stays the same.
Over the last seven days, Shiba Inu has had a net outflow of 41 million tokens, according to Nansen, a blockchain analytics company. This transfer of tokens from exchanges to individual wallets is taken as a bullish indication because it shows that a large number of investors are choosing to keep their currencies rather than sell them. Consequently, there are now 25.48% fewer Shiba Inus available overall on exchanges.
Bullish Sentiment in the Market
There have also been indications of a robust rebound in the Shiba Inu derivatives market. Data from Coinglass shows that open interest in Shiba Inu futures has increased by over 62% to about $77 million. Many people interpret this sudden increase in open interest as a sign of rising market confidence and a possible bullish trend for the coin.
The rise in open interest has coincided with a 200% increase in trading volumes in the futures market, which now totals $1.19 billion. Such increases in open interest and volume are usually indicative of traders’ upbeat attitudes, indicating that many believe the bullish trend will continue.
With its recent surge, Shiba Inu has established itself as one of the best-performing cryptocurrencies, especially when it comes to meme coins. Analysts warn that a temporary price correction may result from the present FOMO-driven spike.
Santiment advised traders to exercise patience and hold off on anticipating more upward momentum until the market’s bullish narratives have subsided. Whether the positive feeling holds after the initial excitement subsides will determine whether the currency will break through to its February high of $0.000043.