The recent crypto market dynamics show that momentum is fading, with major cryptocurrencies facing high volatility.
Shiba Inu (SHIB) has not been left out of this negative trend, as the latest data from Coinglass shows that open interest in Shiba Inu has fallen significantly by 24.59% in just one day.
Shiba Inu cools off
While the crypto market remains uncertain, it has sparked fears and doubts among market participants, as on-chain activity increasingly reflects negative sentiment. As a result, Shiba Inu is seen returning to the red zone.
According to the data provided, the popular dog-themed meme token has recorded 12.25 trillion SHIB in total futures open interest—a level last witnessed about three weeks ago. While this is worth about $172.61 million, it represents a significant decline from the levels observed in the previous 24 hours.
This means that the total amount of money invested in Shiba Inu derivatives over the last day has decreased substantially, suggesting reduced optimism and interest among investors.
Projecting a massive 24.59% decline, this sharp drop in SHIB’s open interest signals a notable shift in market sentiment, accompanied by a significant cooling in trader enthusiasm.
This metric is closely monitored by investors as it serves as a key indicator for the potential performance of a cryptocurrency.
Notably, SHIB’s open interest represents the total value of all open futures contracts on the leading meme coin. Typically, a fall in a token’s open interest signals declining investor confidence in the asset’s short-term momentum.
The negative trend has also been reflected in the price of the token. Data from CoinMarketCap shows that Shiba Inu has declined by a massive 6.63% in the last 24 hours. As of press time, it is trading at $0.00001313.
The fall in SHIB’s open interest comes as no surprise, amid broader uncertainty in the global crypto market, with Bitcoin and all leading altcoins facing major downturns.
Considering SHIB’s strong community and consistent ecosystem developments, this metric has sparked concern among investors. They worry that a potential bear phase might unfold for the SHIB ecosystem if the trend doesn’t reverse, potentially putting its holders at substantial losses.
