2 days ago
Need grounds of speculator fervor. Look nary further than Coinglass' crypto derivatives leaderboard, which shows that fartcoin (FARTCOIN), the Solana-based memecoin, is present the 10th largest token based connected derivatives unfastened interest.
As of writing, notional unfastened involvement successful futures tied to fartcoin totaled implicit $1 billion, placing the gag cryptocurrency up of well-established coins, specified arsenic Litecoin (LTC), Chainlink's LINK (LINK), Avalanche's AVAX (AVAX), and respective others.
The different tokens play pivotal roles successful decentralized concern (DeFi), blockchain oracles and payments. Notional unfastened involvement refers to the dollar worth locked successful the fig of unfastened oregon progressive derivative contracts astatine a fixed time.
What's much alarming is that fartcoin's unfastened involvement present equals 65% of its marketplace capitalization of $1.62 billion. By marketplace value, fartcoin ranks 83rd successful the world. Meanwhile, the $84.7 cardinal unfastened involvement successful bitcoin derivatives amounts to conscionable 3.5% of the starring cryptocurrency's marketplace worth of $2.36 trillion.
Fartcoin's unusually precocious unfastened involvement comparative to its marketplace headdress indicates a buildup of speculative excesses typically seen during the crypto marketplace bull runs, which drives retail investors to instrumentality important risks successful cheaper tokens.
A akin inclination is seen successful different smaller coins, according to information tracked by Alphractal.
"From the Top 300 down, Open Interest becomes disproportionately precocious compared to Market Cap — a beardown hazard signal. What does this mean? These altcoins volition yet liquidate 90% of traders, whether they’re agelong oregon short. They are besides overmuch harder to analyse with consistency," laminitis and CEO of Alphractal, noted connected X.
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