๐๐ฑ๐ฆ๐ฏ ๐๐ฏ๐ต๐ฆ๐ณ๐ฆ๐ด๐ต ๐ณ๐ฆ๐ง๐ฆ๐ณ๐ด ๐ต๐ฐ ๐ต๐ฉ๐ฆ ๐ต๐ฐ๐ต๐ข๐ญ ๐ข๐ฎ๐ฐ๐ถ๐ฏ๐ต ๐ฐ๐ง ๐ฑ๐ฆ๐ฏ๐ฅ๐ช๐ฏ๐จ ๐ฅ๐ฆ๐ณ๐ช๐ท๐ข๐ต๐ช๐ท๐ฆ ๐ค๐ฐ๐ฏ๐ต๐ณ๐ข๐ค๐ต๐ด ๐ต๐ฉ๐ข๐ต ๐ฉ๐ข๐ท๐ฆ ๐ฏ๐ฐ๐ต ๐บ๐ฆ๐ต ๐ฃ๐ฆ๐ฆ๐ฏ ๐ด๐ฆ๐ต๐ต๐ญ๐ฆ๐ฅ. ๐๐ฏ ๐ข ๐ง๐ถ๐ต๐ถ๐ณ๐ฆ๐ด ๐ค๐ฐ๐ฏ๐ต๐ณ๐ข๐ค๐ต, ๐ง๐ฐ๐ณ ๐ฆ๐ท๐ฆ๐ณ๐บ ๐ด๐ฆ๐ญ๐ญ๐ฆ๐ณ, ๐ข ๐ฃ๐ถ๐บ๐ฆ๐ณ ๐ช๐ด ๐ณ๐ฆ๐ฒ๐ถ๐ช๐ณ๐ฆ๐ฅ ๐ต๐ฐ ๐ด๐ฆ๐ต๐ต๐ญ๐ฆ ๐ต๐ฉ๐ฆ ๐ค๐ฐ๐ฏ๐ต๐ณ๐ข๐ค๐ต.
The memecoin frenzy has been the buzz of the crypto community this bull season. Pepe and WIF have surged into the top 20 cryptocurrencies by market capitalization within a year of their public launch.
These memecoins have gained significant traction in the crypto leverage market, where traders either go short or long on their prices.
Four out of the top 10 cryptocurrencies by open interest (OI) are memecoins, with Pepe , leading the charge with $812.6 million in OI and nearly half of Solanaโs $1.7 billion in OI.
Apart from Pepe, Dogecoin , Bonk (BONK), and Dogwifhat (WIF) also made it to the top 10. Bitcoin is leading the chart with $11.1 billion in OI, followed by Ethereum with $9.15 billion.
Another thing to note is the significant difference in OI from top to bottom. Bitcoin’s OI is $11 billion, while the tenth-placed Near Protocol has only $230 million in OI, indicating the major difference in tradersโ interest.
The recent rise in OI for memecoins comes from its bullish momentum over the past couple of weeks when Pepe hit a new all-time high while WIF reached a new multi-week high above $3.30.
Open Interest refers to the total amount of pending derivative contracts that have not yet been settled. In a futures contract, for every seller, a buyer is required to settle the contract.
A contract is deemed โopenโ from the moment it is opened by the buyer or seller until it is closed by the counterparty. OI increases when new contracts are added and decreases when contracts are settled. In contrast to the trading volume, OI is continuous data.
A growing OI indicates bullish momentum in the market as leverage traders open more contracts in anticipation of price momentum.
๐๐ฆ๐ด๐ฑ๐ช๐ต๐ฆ ๐ต๐ฉ๐ฆ ๐ด๐ถ๐ณ๐จ๐ฆ ๐ช๐ฏ ๐ต๐ฉ๐ฆ ๐ฑ๐ณ๐ช๐ค๐ฆ๐ด ๐ฐ๐ง ๐ฎ๐ฆ๐ฎ๐ฆ๐ค๐ฐ๐ช๐ฏ๐ด ๐ข๐ฏ๐ฅ ๐ต๐ฉ๐ฆ ๐ณ๐ช๐ด๐ฆ ๐ช๐ฏ ๐๐, ๐ต๐ฉ๐ฆ ๐ง๐ถ๐ฏ๐ฅ๐ช๐ฏ๐จ ๐ณ๐ข๐ต๐ฆ๐ด ๐ณ๐ฆ๐ฎ๐ข๐ช๐ฏ๐ฆ๐ฅ ๐ฏ๐ฆ๐จ๐ข๐ต๐ช๐ท๐ฆ ๐ง๐ฐ๐ณ ๐ต๐ฉ๐ฆ ๐ฎ๐ฆ๐ฎ๐ฆ๐ค๐ฐ๐ช๐ฏ๐ด ๐ข๐ค๐ณ๐ฐ๐ด๐ด ๐ค๐ณ๐บ๐ฑ๐ต๐ฐ ๐ฆ๐น๐ค๐ฉ๐ข๐ฏ๐จ๐ฆ๐ด.
Funding rates represent the cost of holding a position in a perpetual swap or futures contract relative to the assetโs spot price. Positive funding rates indicate a bullish market sentiment while a negative funding rate indicates a bearish sentiment.
