Is the Shiba Inu open interest keeping pace with the general cryptocurrency market trends? Not quite, it seems. While the crypto market has been witnessing a consistent surge in open interest over the recent months, Shiba Inu has been charting a different course.
Shiba Inu’s Divergent Open Interest Path
Although the open interest of the largest cryptocurrencies has seen a significant leap, Shiba Inu’s rise has been comparatively subdued, which may have repercussions on the altcoin’s price. The Shiba Inu open interest began its upward journey in August, coinciding with the onset of the current bull run. However, in the months that followed, its open interest has been notably lower, even as other leading cryptocurrencies are experiencing major spikes.
As per data from Coinglass, Shiba Inu’s open interest crossed the $43 million mark in August but has struggled to reach that level again. It has since declined and is hovering just under the $20 million mark. This behavior is not unusual for the altcoin but represents a deviation from Bitcoin’s trends.
Shiba Inu Vs. Dogecoin Open Interest
Dogecoin, Shiba Inu’s primary rival, has mirrored Bitcoin’s trajectory, with the open interest remaining low through October and skyrocketing in November. To illustrate, Dogecoin’s open interest plummeted to as low as $226 million in October before surging to a high of $520 million in November. In contrast, the Shiba Inu open interest has been struggling, peaking at a low of $17 million in November with a modest increase to $18 million in December. This is in sharp contrast to the bustling open interest activity seen in Bitcoin and Dogecoin as prices have rebounded.
Shiba Inu’s Open Interest Vs. Price
Another way in which Shiba Inu differs from the rest of the crypto market is that its price does not move in direct proportion to the open interest. While Bitcoin and Dogecoin have seen prices rise as open interest has soared, Shiba Inu’s price has remained relatively high while the open interest has been relatively low.
This indicates that a rise in open interest is not a significant factor driving the SHIB price. Therefore, unlike other cryptocurrencies, a crash in open interest will likely not lead to a price crash. However, Shiba Inu continues to follow Bitcoin’s recovery closely, so a decline in the BTC price could severely impact the SHIB price.
For those interested in keeping an eye on the Shiba Inu open interest and other cryptocurrency trends, the cryptoview.io application offers a comprehensive solution.
Featured image from Fast Company, chart from Tradingview.com
