- Shiba Inu (SHIB) has witnessed a substantial price surge, driven by robust on-chain dynamics and notable whale activity.
- Derivatives data indicates a significant increase in open interest, suggesting strong market engagement.
- Recent trading volumes mirror the patterns observed during its 2021 bull run.
Shiba Inu enjoys a price surge driven by strong on-chain metrics and increased whale transactions, echoing its 2021 bull run.
Shiba Inu’s Price Jumps Over 40% Amid Enhanced On-Chain Activity
The second-largest meme coin, Shiba Inu, has experienced a significant increase in value, soaring 23% within a 24-hour period and drawing nearer to the $0.0000191 mark. The price hike aligns with a remarkable 240% rise in daily trading volumes, which now exceed $1.36 billion, reminiscent of the bull market witnessed in 2021.
Key Metrics Behind the Rally
Recent data from crypto analytics platform Santiment highlights a 43% increase in SHIB’s price over the past nine days, underpinned by heightened on-chain activity. Major contributors to this rally include a notable surge in trading volume, robust circulation of SHIB tokens, and a spike in whale transactions reaching a 10-week high. Additionally, rising social dominance has spurred a sense of FOMO (fear of missing out) among traders.
Derivatives Market Shows Strength
In the derivatives market, open interest for SHIB has surged by 65%, surpassing the $60 million threshold. Data from Coinglass reveals that 24-hour liquidations for Shiba Inu have reached $2.23 million, with short liquidations accounting for $1.29 million. The increased funding rate further indicates bullish sentiment among futures traders.
Potential for Continued Price Rally
For SHIB to sustain this momentum and aim for the February high of $0.000043, a breakout above $0.000020 with strong trading volumes is crucial. While some speculate about SHIB reaching the $1 mark, this would require an extraordinary surge in volume, counterbalanced by the substantial number of SHIB still in circulation. Meanwhile, the SHIB ecosystem continues to progress, notably with the launch of the SHI stablecoin and increased total value locked (TVL) on Shibarium’s Layer 2 network, now at $3.64 million.
Conclusion
Shiba Inu’s recent surge exemplifies the power of strong on-chain activities and whale transactions in driving market momentum. While replicating its 2021 bull run remains a challenging feat, the continued development of the SHIB ecosystem and market dynamics could pave the way for further gains. Investors should closely monitor trading volumes and market sentiment to gauge future movements of this popular meme coin.
