29 May 2024
Shiba Inu is currently the talk of the crypto market after mounting a 15% surprise rally. However, beyond the price rally, SHIB is shining in other places, and one of those is the open interest. This metric has seen a significant increase, with potential implications for the SHIB price going forward.
Shiba Inu Open Interest Sees 85% Surge
The Shiba Inu open interest in up over 85% in the past day as the price has gone on a recovery trend. Open interest tracks the futures or options contract for a particular asset, given a total of how much money is invested in that asset’s derivatives at a time. This means that the amount invested in Shiba Inu derivatives over the last day has seen a significant jump.
The 85% figure is taken from an average of two increases in the Shiba Inu open interest across the Binance and ByBit exchanges. According to data from Coinglass, the SHIB open interest in Binance rose more than 60% in the last day. In the same vein, the Shiba Inu open interest is up more than 111% on the Bybit exchange in the last day. So on average, the open interest for the meme coin is up a whopping 85% in 24 hours.
Dollar figures also show the significance of this jump and just how much crypto investors are moving into Shiba Inu. The current open interest on the Binance exchange is $136.79 million, which means whatever $82 million flowed into SHIB derivatives product in one day.
On the Bybit exchange, the rise is similar, currently showing a total of $96.16 million in open interest. At a rate of 117.81%, it means that around $50 million flowed into SHIB derivatives on the exchange. Combined, the Shiba Inu open interest if up around $135 million in one day.
SHIB Price Still Seeing Upside
The drastic rise in the Shiba Inu open interest is undoubtedly a positive development for the SHIB price. This rise has now sent the open interest toward its previous all-time high of March 5, 2024. If history is anything to go by, if the open interest hits a new all-time high, then the meme coin could be looking at a new yearly peak toward $0.00004.
Amid the surge in open interest, the SHIB price also rose around 16% at the same time. The price has since corrected back downward, but according to data from the token tracking website CoinMarketCap, the meme coin is maintaining 24-hour gains of 7.77%.
Interestingly, the surge saw Shiba Inu briefly overtake Cardano and claim the 10th spot on the list of largest cryptocurrencies by market cap. However, with the price correction, Shiba Inu has fallen back down once more to 11th place.