Data shows metrics related to Shiba Inu saw rapid growth around the meme coin rising 34%, which is a strong sign that FOMO is growing among investors.
The Shiba Inu Has Seen an Improvement in Activity at Its Recent Meeting
In a new post on X, the analytics company Santiment discussed how the various indicators related to the Shiba Inu looked when its price rose by 34% last week.
There are three on-chain metrics of interest here: Volume, Circulation, and Whaling Count. The first of these, Volume, tracks the total amount of SHIB involved in trading on major exchanges on a daily basis. This indicator naturally shows how strong the trading interest of investors is in the greenback.
Rotation is also related to work, but is not limited to rotation. This metric measures the total number of unique asset tokens participating in activities on the network. Whenever the Volume jumps without a corresponding spike in this indicator, it means that the trading activity around the meme coin may be from a wash trade.
The last indicator, Whale Transaction Count, tells us about how many transactions worth more than $1 million are made on the Shiba Inu network every day. In general, only whale organizations are able to make such large changes for a single transfer, so this metric shows the activity in which the big hands of the market participate.
Now, here’s a chart shared by the analytics company that shows the trend in these three metrics of the SHIB series over the past few months:
As shown in the graph above, all three of these Shiba Inu indices have registered sharp increases alongside recent price increases, which means that overall activity has increased in the network. Generally, rising activity is a good sign whenever there is a rally, as it suggests that investors are pulling the coin. Usually the influx of traders that fuel the price movement like this needs to continue.
The recent increase in SHIB metrics, however, has been a bit extreme, which may indicate that traders are getting excited too quickly. Santiment also pointed out that social media discussions related to the coin have exploded at the same time, lending to the fact that investors are feeling FOMO.
Cryptocurrency markets historically tend to move against the expectations of the majority, so when the crowd shows this big explosion, the upside may be a possibility.
“For the market cap ranked #13 to surpass the $0.000043 year-high made back in February, traders should wait for the bullish narrative to cool down a bit,” the analytics firm noted.
SHIB price
After showing a 14% advance in its latest run during the last 24 hours, Shiba Inu broke past $0.0000195.
