The prices of meme coins like SHIB and WIF have skyrocketed by up to 60% recently. This price increase was triggered by huge losses of shorters, who bet against the meme coin and had to close their positions with total losses reaching $50 million in the last 24 hours.
Data from Coinglass shows a spike in futures trading volume for meme coins such as Dogecoin , Shiba Inu , Pepe , Floki , and Bonk . As a result, shorters who bet against a rise in the price of the meme coin had to liquidate their positions at huge losses.
Liquidation occurs when an exchange forcibly closes a trader's leveraged trading position because they fail to maintain the minimum required margin (lack of funds to maintain the trading position).
This upward price trend was led by the meme coin Pepe (PEPE) on the Ethereum network whose price exploded by 100% to a record high. WIF, a dog-themed meme coin on the Solana network that only launched last November, also soared by 80% and became one of the first meme coins to surpass the price of $1.
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Meme Coins Are Increasingly Popular
The meme coin's popularity surged again last week, seen as an indirect bet on the growth of the blockchain on which the coin resides. Ethereum-based Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Floki (FLOKI) dominate the meme trading volume on the network. Meanwhile, Bonk (BONK) and Dogwifhat (WIF) represent the Solana network.
Longs (betting on price increases) on DOGE broke records by opening positions worth $1 billion on Thursday. Nearly 70% of the bets predicted a DOGE price increase. Since CoinDesk reported this volume spike, DOGE prices have risen more than 50%.
Based on Coinglass data, interest in futures contracts for PEPE, SHIB, BONK, and FLOKI has also increased rapidly to reach a cumulative $1.5 billion in recent days. This increase in futures betting indicates an influx of new funds into the market.
CoinDesk 20 Index Skyrockets
Meanwhile, the CoinDesk 20 Index (CD20), which is the benchmark index for the largest and most liquid cryptocurrencies, jumped nearly 5%.
Meme coins are generally considered to have no intrinsic value, but their popularity continues to grow among traders. Some parties, such as the Avalanche Foundation (the non-profit organization that maintains the Avalanche blockchain), have even begun investing in meme coins built on their network. This shows their recognition of the power of online communities and the value of memes in attracting investors.
Market observers argue that meme coins, although risky, could be a profitable way to profit from the growth of the blockchain ecosystem. "Even though meme coins are not as popular for a time, their prices often rise after top coins rally, and traders shift from ETH and BTC to altcoins," Nick Ruck, COO of ContentFi Labs, told CoinDesk in a Telegram message last week.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH ), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Shiba Inu (SHIB): What is it, How Does It Work, and Why is it Popular?
Pepe Coin's Rising Popularity in the Crypto Market: Analysis of PEPE's Price and Market Strength
Meme Fever: PEPE, FLOKI and WIF Surf the Ethereum and Solana Waves
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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