Shiba Inu (SHIB), a cryptocurrency that focuses on memes, has seen a surge in investment while traders exercise caution with bitcoin (BTC).
According to data provider Coinglass, open interest in SHIB futures offered by Binance has increased by more than a factor of two to $101.65 million this month, reaching its highest level since February 5. The contract size for SHIB futures is 1,000 SHIB, and there is a maximum leverage of 25 times.
With hopes that an upcoming layer-2 launch will help SHIB lose its reputation as a meme coin, the cryptocurrency’s market value has increased by almost 32% to $6.58 billion.
Increased open interest and market capitalization point to fresh capital entering the SHIB market. In the past, this scenario has predicted declines in bitcoin, the most valuable cryptocurrency.
Since the start of SHIB, the open interest has surpassed $100 million at least seven times. The previous six peaks denoted the peaks of the local bitcoin price.The pattern is consistent with conventional markets, where disproportionate profits in popular stocks compared to defensive investments are viewed as a contrarian indicator for the overall market. This month, despite the SHIB boom, Bitcoin, the most valuable cryptocurrency, has traded exactly flat at around $30,000.
Although past performance cannot predict future outcomes, some analysts believe that bitcoin will continue to trend upward.