6 months ago
Annualized perpetual backing rates successful tiny headdress tokens aft bitcoin's (BTC) caller bullish intermission has cooled jets successful the broader market, shaking retired over-leveraged positions and normalizing costs associated with betting connected terms rallies. One token, however, is inactive blazing hot: Solana-based decentralized speech Raydium's autochthonal cryptocurrency, RAY.
As the lone coin with annualized perpetual backing rates inactive exceeding 160%, RAY stands retired among the small, mid and large-cap tokens arsenic the astir overheated cryptocurrency, according to information from VeloData. The elevated complaint suggests the marketplace for RAY is overcrowded with agelong positions, with leverage skewed heavy toward the bullish side.
In specified conditions, adjacent a flimsy dip successful terms tin shingle the assurance of over-leveraged bulls, particularly precocious entrants, triggering a wide unwinding of agelong positions, which often exacerbates the terms decline, starring to a much pronounced sell-off. Tokens with a <a href="https://www.coingecko.com/en/categories/decentralized-exchange" target="_blank">market capitalization</a> of little than $5 billion, specified arsenic RAY, are peculiarly susceptible to shenanigans successful the derivatives market.
It's casual to spot wherefore bulls person thrown caution to the wind. Despite the caller 17% terms pullback to $5.39, RAY is inactive up 67% for the period versus marketplace person BTC's 35% surge, <a href="https://www.coindesk.com/price/raydium" target="_blank">CoinDesk information show</a>.
The market-beating emergence comes amid grounds enactment connected Raydium. According to information root <a href="https://app.artemis.xyz/home" target="_blank">Artemis</a>, Raydium has <a href="https://app.artemis.xyz/project/raydium?from=sectors&tab=fundamentals" target="_blank">registered</a> a trading measurement of $117.8 cardinal this month, astir doubly the full <a href="https://app.artemis.xyz/project/Ethereum?from=sectors&tab=fundamentals" target="_blank">Ethereum-based DEX volume</a> of $66.8 billion. Raydium has generated $175 cardinal successful fees versus Ethereum's $168 million. Ethereum is the world's largest astute declaration blockchain.
Note that overmuch of the grounds enactment connected Raydium occurred aboriginal this month, chiefly driven by the memecoin frenzy, which propelled trading volumes to grounds highs, fueling important involvement successful the RAY token. However, the frenzied momentum has begun to cool, weakening the underlying enactment for a sustained emergence successful the RAY token.
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