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Meme coins suffer the biggest outflow in open interest

Author: Content Editor
Meme coins suffer the biggest outflow in open interest
The open interest in all crypto asset classes has been declining, with meme tokens being the most affected. Over 52% of meme open interest has left the market as traders grew skeptical of both established meme tokens and newly minted trending tokens. Traders are cautious about allocating funds to derivative positions and are keeping their dry powder on the sidelines. BTC and ETH open interest are growing more cautiously, while SOL open interest remains flat. Meme tokens have experienced a significant decline in performance, erasing most of their narrative value and losing their appeal as a source of fast gains. Meme token volumes have become more subdued as the market lost enthusiasm, and even cult tokens are losing holders. Overall open interest for all crypto assets is drifting sideways, and funding rates often turn negative as traders are reluctant to bet on altcoins. The decrease in open interest may indicate liquidated positions and a general withdrawal of traders. The meme token market as a whole is down, with leading tokens experiencing a deep decline. Memes have been in decline as AI agents took over, and the launch of certain tokens and insider trading further undermined the meme market. Whales are still buying meme assets, but they are more selective and tokens with utility are receiving more inflows. The narrative shift has affected memes and AI agents the most, with memes losing a significant portion of their trading volumes. Liquidity is returning to utility projects and a smaller selection of memes, AI agent tokens, or similar assets.

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