Annualized perpetual funding charges in small cap tokens after bitcoin’s (BTC) latest bullish pause has cooled jets within the broader market, shaking out over-leveraged positions and normalizing prices related to betting on value rallies. One token, nonetheless, continues to be blazing sizzling: Solana-based decentralized trade Raydium’s native cryptocurrency, RAY.
As the one coin with annualized perpetual funding charges nonetheless exceeding 160%, RAY stands out among the many small, mid and large-cap tokens as probably the most overheated cryptocurrency, in response to knowledge from VeloData. The elevated price suggests the marketplace for RAY is overcrowded with lengthy positions, with leverage skewed closely towards the bullish aspect.
In such circumstances, even a slight dip in value can shake the boldness of over-leveraged bulls, particularly late entrants, triggering a mass unwinding of lengthy positions, which regularly exacerbates the worth decline, resulting in a extra pronounced sell-off. Tokens with a market capitalization of lower than $5 billion, akin to RAY, are notably weak to shenanigans within the derivatives market.
Annualized perpetual funding charges in small cap tokens
It is easy to see why bulls have thrown warning to the wind. Regardless of the latest 17% value pullback to $5.39, RAY continues to be up 67% for the month versus market chief BTC’s 35% surge, CoinDesk knowledge present.
The market-beating rise comes amid report exercise on Raydium. Based on knowledge supply Artemis, Raydium has registered a buying and selling quantity of $117.8 billion this month, practically twice all the Ethereum-based DEX quantity of $66.8 billion. Raydium has generated $175 million in charges versus Ethereum’s $168 million. Ethereum is the world’s largest good contract blockchain.
Raydium’s DEX buying and selling quantity
Word that a lot of the report exercise on Raydium occurred early this month, primarily pushed by the memecoin frenzy, which propelled buying and selling volumes to report highs, fueling important curiosity within the RAY token. Nonetheless, the frenzied momentum has begun to chill, weakening the underlying assist for a sustained rise within the RAY token.
Raydium DEX volumes have cooled previously seven days
