The coin with a frog theme saw trade volumes rise to $3.6 billion, a record high. Despite the introduction of ecosystem upgrades by the developers of other meme tokens like as Floki, Dogecoin, and Shiba Inu, its increases exceeded those of these tokens.
A rally in meme coins, led by the likes of dogecoin (DOGE) and bonk (BONK), saw Pepecoin (PEPE) rise as much as 60% in the last day, extending weekly gains to almost 370%.
CoinGecko data indicates that trading volumes for the tokens with frog themes surged to all-time highs of $3.6 billion, probably due to excessive wagers on riskier assets like altcoins and meme coins, as a result of a risk-on atmosphere.
Even if the creators of some of these tokens offered ecosystem changes, the frog-themed pepecoin saw gains that were noticeably higher than those of meme tokens dogecoin and Shiba Inu (SHIB). Over the previous week, SHIB gained 200% while DOGE gained 170%.
When ether, bitcoin, and Solana’s SOL all saw increases of over 10% in value towards the end of February, meme coins started to gain attention. Since non-serious tokens are more retail-friendly and simpler for novice investors to understand, they are viewed as a means of investing in the expansion of a blockchain.
PEPE-linked futures products, on the other hand, have experienced particularly huge liquidations since Friday, which may indicate that traders are short covering, or pulling out of pessimistic bets on the meme coin’s price, and inflating the extent of the gain.
“As bluechip tokens and coins take a breather in their recent surge in prices, traders and investors are pumping meme coins to satisfy a hunger for quick flips,” stated Nick Ruck, COO of ContentFi Labs.
More than $50 million was liquidated from futures contracts that tracked PEPE. As short positions, or bets that PEPE would decline, were settled, this might have added to the price rise.
According to statistics, the only futures liquidations that have increased over the last day are those for bitcoin (BTC), ether (ETH), and dogecoin.
Consequently, perpetual futures linked to PEPE futures have negative funding rates, which suggests that bearish positions are prevalent in the derivatives market. A negative funding rate is a sign of dominance for shorts, who will pay longs to maintain the open position on their bearish bets.