Recent data indicates that metrics associated with Shiba Inu have experienced significant growth correlating with the meme coin’s 34% increase, suggesting a potential emergence of FOMO among investors.
Shiba Inu Activity Has Increased Amidst Recent Rally
In a recent update on X, the analytics company Santiment analyzed the various indicators related to Shiba Inu as its price surged by 34% in the past week.
There are three noteworthy on-chain metrics: Volume, Circulation, and Whale Transaction Count. The first, Volume, measures the total quantity of SHIB traded on major exchanges daily. This metric typically reflects the intensity of investor interest in the coin.
Circulation is also indicative of activity, but it encompasses more than just trading on exchanges. This metric counts the total number of unique tokens of the asset involved in transactions within the network. If Volume increases without a corresponding rise in Circulation, it may suggest that the trading activity is driven by wash trading.
The final metric, Whale Transaction Count, indicates the number of transactions over $1 million occurring on the Shiba Inu network daily. Typically, only whale entities can perform such large single transfers, making this metric a reflection of activity among the market’s major players.
Here is the chart provided by the analytics firm, illustrating the trends in these three SHIB on-chain metrics over the preceding months:
The graph above shows that all three Shiba Inu indicators have experienced a noticeable increase alongside the recent price spike, indicating an overall surge in network activity. In general, heightened activity is a positive sign during rallies, as it suggests that investors are becoming increasingly interested in the coin. Often, new traders provide the momentum needed for ongoing price movements.
However, the latest increase in SHIB metrics appears somewhat extreme, possibly indicating that traders are becoming overly enthusiastic too swiftly. Santiment has also noted a rise in discussions on social media regarding the coin, further supporting the notion that investors are experiencing FOMO.
Historically, cryptocurrency markets have a tendency to move contrary to the majority’s expectations, so elevated enthusiasm among crowds can indicate an impending peak.
“For the #13 ranked market cap to surpass its $0.000043 year-high achieved in February, traders should allow for the high bullish sentiments to temper somewhat,” advises the analytics firm.
SHIB Price
After witnessing a 14% continuation in its recent rally over the last 24 hours, Shiba Inu has surpassed the $0.0000195 threshold.
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