According to analytics platform Santiment, XRP and Litecoin (LTC) are currently experiencing elevated levels of fear of missing out (FOMO).
Santiment has added that the two aforementioned cryptocurrencies are emerging as "high-risk high-reward investments".
"These coins can continue to rise, but the crowd's euphoria toward these assets could make them high-risk, high-reward investments this week," the firm said.
Gamza KhanzadaevXRP and LTC are up 2.9% and 2.6%, respectively, over the last 24 hours, according to CoinGecko data.
FOMO represents a peculiar psychological phenomenon that has attracted some scholarly attention over the past two decades. The term, which was first used in 2004, ended up appearing in the Oxford Dictionary back in 2013.
When it comes to investor behavior, it refers to the feeling of missing out on potentially significant gains. This psychological phenomenon is characterized by pervasive apprehension that someone else might be enjoying significant success with his or her investment. Hence, there is an aspect of unmet relatedness.
Social media platforms have emerged as a great source of FOMO, with users constantly being exposed to red-hot investment opportunities in cryptocurrencies by influencers.
Tomiwabold OlajideMorgan Housel, the award-winning author of the famous “The Psychology of Money” book, recently stressed the importance of being able to keep FOMO under control, describing it as one of the most important financial skills.
Bitcoin's stunning recovery
In the meantime, Bitcoin, the leading cryptocurrency, recently managed to surpass the $65,000 level for the first time in weeks.
The Fear & Greed Index is now flashing "greed" with 65 out of 100 points. This shows that market sentiment has improved significantly. Just days ago, the index was still in "fear" territory.
Mushumir Butt
Tomiwabold Olajide