One of the most trending hashtags in social media, #FOMO stands for ‘fear of missing out.’ In the context of cryptocurrencies, FOMO is often used to denote the sentiment of new crypto investors buying into the market with expectations of making quick profits.
The crypto community frequently uses FOMO to encourage potential investors to buy tokens, believing that their prices will soar as their respective projects take off. #FOMO is one of the crypto market’s leading sentiments behind the meme coin frenzy. This movement propelled joke-based cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB) to popularity.
The fear of missing out is a key driver of buying activity in the crypto market. It represents the sentiment investors experience when they see a token they do not own performing exceptionally well and offering high returns. This sentiment drives them to enter the market and make a buy trade in such tokens.
A similar FOMO sentiment could also dictate selling activity in digital assets. When investors see posts on social media urging the community to dump some coins or tokens, the FOMO mood kicks in and drives such sell-off decisions.