Volume in futures trading tracking meme coins continued to rise significantly on Saturday, with bets against the non-severe token losing a cumulative $50 million in the past 24 hours, a sign of irrational exuberance.
data from Coinglass represents short sales or bets on dogecoin, shiba inu, pepe, and floki, with over $50 million liquidated on bonk in the past 24 hours, contributing to the soaring prices of these tokens.
Liquidation refers to the forced closing of a trader’s leveraged position by an exchange due to the loss of some or all of the trader’s initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (does not have enough funds to sustain the trade).
PEPE, the frog-themed meme token on Ethereum, has soared 100% to an all-time high. Solana’s dog-themed token WIF, launched in November, rose as much as 80%, becoming one of the first prominent meme tokens to surpass the $1 price mark.
meme coin started to come into focus Last week, proxies bet on the growth of the blockchain on which these tokens are based. Ethereum-based dogecoin (DOGE), shiba inu (SHIB), pepe (PEPE), and floki (FLOKI) capture most of the meme trading volume on that network, while bonk (BONK) and Dogwifhat (WIF ) is acting as his Solana proxy. .
Bullish bets on DOGE set a record of $1 billion in open positions on Thursday. Almost 70% of those bets were long, or betting on the token’s continued growth. DOGE price is up over 50% since CoinDesk first reported peak volume.
Open interest on PEPE, SHIB, BONK, and FLOKI has similarly increased several times over the past few days to a cumulative $1.5 billion. coin glass data is shown. A rise in futures bets indicates that new money is flowing into the market.
Meanwhile, the CoinDesk 20 Index (CD20), the largest and most liquid cryptocurrency benchmark, rose nearly 5%.
Although meme tokens are typically considered to have no intrinsic value, they are rapidly gaining popularity among traders.
Others, like the Avalanche Foundation, the nonprofit organization that maintains the Avalanche blockchain, are investing in meme tokens built on the network, recognizing the online culture and memetic value that such tokens can drive among investors. Some are even starting to invest.
Market observers say meme coins are a profitable, albeit risky, way to profit from the growth of the ecosystem.
Nick Luck, chief operating officer at ContentFi Labs, told CoinDesk in a Telegram message last week that “meme tokens have fallen off the beaten path, but they continue to pump frequently following the rally in blue-chip stocks.” “As a result, traders are shifting their positions from ETH and BTC to altcoins.”
