Shiba Inu and Other Memecoins Experience a Surge in Trading Volume
Data from on-chain analytics firm Santiment reveals that memecoins like Shiba Inu (SHIB), FLOKI, Pepe (PEPE), and Bonk (BONK) have seen a significant increase in their trading volumes. The trading volume refers to the total amount of a cryptocurrency being traded on various spot exchanges within the sector. Higher trading volumes indicate increased interest and activity around the coin.
Santiment’s data shows that the average trading volume for these memecoins has surged by over 3,000% in the past week, suggesting a substantial rise in crowd interest. This surge in volume is not surprising, as sharp price movements tend to attract investors who make more trades during such periods.
In order for a rally to be sustainable, it needs to continue attracting fresh volume. This means that more and more interest needs to come into the asset to fuel its momentum. Fortunately, with the recent spike in volume for Shiba Inu and other memecoins, their current rallies are less likely to fizzle out quickly.
The Relationship Between Trading Volume and Price
While high trading volume can help prolong rallies, it does not necessarily indicate a bullish prediction. Volume can also spike during sell-offs, so it does not provide information about whether the activity is dominated by buying or selling. Therefore, the current high trading volume for Shiba Inu and other memecoins suggests that they will continue to experience high volatility in either direction in the coming days.
Shiba Inu Price Performance
Shiba Inu has seen an impressive price surge of over 180% in the past week, pushing its price to $0.00002746.
Hot Take: Memecoins and Increased Trading Volume
On-chain data reveals that memecoins like Shiba Inu have experienced a significant boost in their trading volumes, indicating a rise in crowd interest. This surge in volume can help sustain rallies, but it does not guarantee bullish predictions. The current high trading volume for Shiba Inu suggests that it will continue to experience high volatility in the coming days. Despite this, Shiba Inu has seen an extraordinary price run in the past week.
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