Memecoins Drive Gains While Major Crypto Tokens BTC, ETH Stagnate Today
Memecoins are currently driving significant gains in the cryptocurrency market, while major tokens like Bitcoin (BTC) and Ethereum (ETH) show signs of stagnation. Bitcoin trades at around $67,166.14 and is struggling to surpass the $70,000 threshold. In contrast, the broader CoinDesk 20 index saw a modest increase of 0.40%, despite Ethereum’s decline to approximately $1,971.32.
Memecoins and AI Tokens Lead the Market
The CoinDesk Memecoin Index (CDMEME) rose by 1.5%, buoyed primarily by PIPPIN, which surged by 46%. Tokens associated with artificial intelligence are also performing well. WLD, co-founded by OpenAI CEO Sam Altman, increased by over 3%, while Virtuals’ VIRTUAL token climbed by 2.4%.
Crypto Market Sentiment and Trends
Despite these gains, the crypto Fear and Greed Index still indicates “extreme fear” following a market selloff last week. Traditional markets displayed some stability, influenced by Prime Minister Sanae Takaichi’s significant election win in Japan. Although Japanese bond yields initially rose, they have since reverted to levels seen prior to the elections, mitigating concerns about overseas capital flows seeking higher returns.
Bearish Momentum in Bitcoin Futures
The Bitcoin futures market shows increasing bearish momentum, with open interest dropping to $15.9 billion. This trend highlights a prolonged phase of deleveraging. Funding rates on platforms like Binance and Bybit have plunged into negative territory, reflecting a heavy premium that short sellers are paying to maintain their positions.
- Three-month basis stagnated at 3% with institutional investment remaining cautious.
- The one-week 25-delta skew for BTC options is at 16%, showing a shift towards bottom-fishing.
- Implied volatility indicates stabilization of long-term expectations.
- Coinglass reported $290 million in liquidations within 24 hours, predominantly impacting BTC and ETH.
Monitoring Liquidation Levels
Binance’s liquidation heatmap suggests that $68,160 is a critical price point to watch for potential liquidation events.
Merkle Trade Shuts Down
Merkle Trade, a leading decentralized exchange on the Aptos blockchain, is closing down after less than two years of operation. The exchange has ceased new trading positions and will forcibly close all open trades soon. Its token, MKL, increased by 9% in the last day but has plummeted by 77% over the past year. Merkle had raised $2.1 million in a seed round backed by notable investors, yet did not provide a clear reason for the shutdown.
As the cryptocurrency market navigates these fluctuations, the rise of memecoins and AI-related tokens highlights ongoing trends diverging from traditional market leaders like Bitcoin and Ethereum.
