SHIB Resurgence Alerts Bitcoin Traders as Interest and Valuation Surge
Once again, we observe a resurgence of investor funds flowing into Shiba Inu (SHIB), a cryptocurrency with a focus on meme culture. This trend carries a note of caution for those engaged in Bitcoin trading.
The data provided by Coinglass, a reliable source of cryptocurrency information, reveals a significant surge in open interest within Binance's SHIB futures market. In the span of this month alone, the open interest has more than doubled, reaching an impressive $101.65 million. This figure now stands as the highest since February 5th. These SHIB futures contracts are structured around quantities of 1000 SHIB per contract and come with the potential for leverages of up to 25 times.
A notable shift has occurred in SHIB's market valuation, which has surged by an impressive 32%, reaching a total of $6.58 billion. This surge is attributed to growing optimism surrounding an upcoming layer 2 launch, a development anticipated to propel SHIB beyond its current status as a mere meme coin.
The simultaneous increase in open interest and market capitalization serves as a clear indicator of an influx of fresh capital entering the SHIB market. Historically, such a scenario has acted as a precursor to weakness observed in Bitcoin, the preeminent cryptocurrency in terms of market value.
The open interest for SHIB has now crossed the significant threshold of $100 million on no fewer than seven occasions since its inception. Strikingly, the previous six instances of such spikes coincided with local peaks in the price of Bitcoin.