Shiba Inu's Open Interest Jumps 20%, Surpassing Bitcoin and XRP

▲ Shiba Inu (SHIB)/ChatGPT Generated Image ©

A meme coin has fired the starting gun for a spectacular comeback, with its open interest in the derivatives market explosively surging by over 20% in just one day, easily surpassing traditional market leaders, alongside a strong price rebound.

According to the cryptocurrency media outlet Bitcoinist on April 23 (local time), Shiba Inu (SHIB) saw its open interest in the derivatives market soar from approximately $56.27 million the previous day on the 21st, attracting explosive participation from investors. According to CoinGlass data, this figure, after a temporary adjustment, has now risen to $68.78 million, an increase of over 12.5% compared to the previous day.

Particularly noteworthy is that during this period, Shiba Inu's open interest growth rate far exceeded that of Bitcoin (BTC), the absolute dominant force in the market, and large-cap blue-chip XRP (Ripple). This suggests that speculative capital and interest from traders are rapidly shifting from large assets to meme coins. Driven by this influx of funds, SHIB's trading volume also surged by over 95%, reaching $257.78 million.

The fervor in the derivatives market is directly translating into a rise in spot prices. According to CoinMarketCap data, Shiba Inu has rebounded by over 6% in the past week and maintained an increase of over 2.5% in the last 24 hours. Experts interpret the simultaneous surge in price and open interest as a strong bullish signal, indicating an increase in long-position bets utilizing leverage and active new capital entering the market.

However, behind the optimistic outlook also lies the risk of severe liquidations. If the market becomes overheated due to an excessive influx of buying pressure into long positions, even a very slight price drop can trigger a chain reaction of forced liquidations. The media warns that the current structure, where traders are skewed in only one direction – price increase – could potentially lead to a deeper bear market, urging investors to exercise extreme caution.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*